- SASRA data shows that nearly 92% of SACCO members hold balances of KSh100,000 or less, with 89% below KSh50,000, highlighting the small‑scale nature of savings among millions of Kenyans.
- Proposed amendments to the Sacco Societies Act aim to operationalize a KSh100,000 compensation ceiling, modernize SACCOs through shared technology services, and establish a central liquidity framework under CBK oversight.
Nearly nine out of every ten Kenyans with Savings and Credit Cooperative Society (SACCO) accounts have deposits of KSh50,000 or less, underscoring the small‑scale nature of savings among millions of members. According to the Sacco Societies Regulatory Authority (SASRA), this represents about 13.5 million members out of an estimated 15 million nationwide.
The regulator’s latest data shows that regulated SACCOs managed 18.95 million deposit accounts holding a combined KSh832.8 billion as of December 2025. Of these, 16.88 million accounts contained less than Sh50,000, together accounting for just KSh45 billion, or 5.36 percent of total deposits.
Overall, 91.78 percent of SACCO accounts held balances of KSh100,000 or below, leaving only 8.22 percent with deposits above the six‑figure mark. At the other end of the spectrum, accounts with more than KSh1 million represented just 0.81 percent of all accounts but held 38.38 percent of total deposits, highlighting the concentration of savings among a small minority.
SASRA presented the findings to the National Assembly Trade Committee in support of proposed amendments to the Sacco Societies Act. The amendments seek to operationalize the long‑delayed Deposit Guarantee Fund, with a compensation ceiling of KSh100,000. The regulator argued that such a limit would fully protect the overwhelming majority of members in the event of a SACCO collapse.
“An assessment of deposit balance levels indicates that the majority of accounts, which is equivalent to 92 percent who hold balances of Sh100,000 and below,” SASRA said in its submission.
“This implies that a substantial number of deposit holders lie within the compensation bracket and will be fully covered in the unlikely event of failure.”
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The authority noted that international standards recommend deposit insurance schemes be designed to protect the vast majority of depositors rather than the largest balances. A World Bank‑supported study conducted in 2018 and 2019 similarly concluded that a KSh100,000 guarantee would protect about 92 percent of SACCO accounts, aligning Kenya with global principles issued by the International Association of Deposit Insurers.
Beyond deposit protection, the proposed law also seeks to modernize Kenya’s SACCO industry through shared technology services and stronger prudential oversight. SASRA says 80 percent of regulated SACCOs have asset bases below Sh5 billion, making it difficult for them to independently invest in modern digital platforms for lending, payments, and member services.
To address this, the Bill introduces a shared services framework under which SACCOs can jointly access technology infrastructure while retaining their individual identities. More than 76 SACCOs have already established a common platform, awaiting enactment of the law before operating under formal regulatory oversight.
By Masaki Enock
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