- Regulated Saccos recorded higher earnings as lending remained their main revenue source.
- Investments in cooperative institutions and money market funds expanded during the year.
- Saccos ventured into green bonds as they diversified their investment portfolios.
Regulated Savings and Credit Cooperative Societies (SACCOs) grew their total income to Ksh 172.83 billion in 2025, up from Ksh 153.05 billion in 2024.
Interest earned on loans drove most of the increase, according to the Sacco Societies Regulatory Authority (SASRA). Its SACCO Supervision Annual Report 2025, released by Chief Executive Officer CPA David Sandagi, points to continued financial growth in the sector and rising use of digital financial services.
Loan interest remained the leading source of revenue. It rose to Ksh 138.14 billion in 2025 from Ksh 127.64 billion the previous year.
These earnings made up 79.93 per cent of total income, underscoring the central role of lending in SACCO profitability.
According to the report, better loan book quality supported the growth in interest income. The improvement was recorded in both Deposit-Taking SACCOs (DT SACCOs) and Non-Withdrawable Deposit-Taking SACCOs (NWDT SACCOs). The performance highlights how prudent lending and effective credit risk management sustain the stability and profitability of SACCOs.
IN CASE YOU MISSED IT:
The report also shows how regulated SACCOs spread their financial investments. These were placed across government securities, placements and shares in National Cooperative Organisations (NACOs), other SACCOs, listed companies, unit trusts and money market funds.
Shares in NACOs formed the largest portion. They climbed from Ksh 19.31 billion in 2024 to Ksh 29.99 billion in 2025. Placements in NACOs also grew sharply, from Ksh 14.33 billion to Ksh 25.68 billion over the same period.
SASRA linked this growth to stronger cooperation among SACCOs and greater confidence in cooperative institutions. Improved liquidity management and the need to deepen ownership and participation in the movement also played a part.
Government securities rose from Ksh 21.35 billion to Ksh 23.64 billion. However, their share of the investment portfolio fell because other categories grew faster.
Exposure to money market funds and unit trusts jumped from Ksh 5.52 billion to Ksh 19.75 billion. Investments in other listed companies edged up from Ksh 710 million to Ksh 750 million.
Notably, the sector also reported its first investment in green bonds, valued at about Ksh 200 million. The move signals that SACCOs are diversifying into sustainable investment instruments.
By Obegi Malack
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