- Lending expanded across key areas of member needs
- Some Saccos recorded faster loan growth than others
- Loan performance showed signs of improvement during the year
The loan portfolio of regulated Savings and Credit Cooperative Societies (SACCOS) expanded by 12.25 per cent to Ksh948.67 billion in 2025, with land and housing emerging as the largest beneficiary of Sacco financing.
The increase represents a rise from Ksh845.11 billion recorded in 2024, according to the Sacco Supervision Report 2025.
Land and housing accounted for Ksh157.2 billion, equivalent to 26.4 per cent of the total loan portfolio. Education followed with Ksh124.5 billion, representing 20.8 per cent, while agriculture attracted Ksh110.74 billion, or 18.6 per cent.
Trade accounted for 13 per cent of lending, followed by consumption and social services at 9.1 per cent. Finance, investment and insurance accounted for 5.4 per cent, manufacturing and servicing industries 4.3 per cent, while human health took 2.5 per cent.
Speaking during the release of the report on Monday, September 28, 2026, Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development Wycliffe Oparanya said the figures demonstrated the role of Saccos in supporting the Bottom-Up Economic Transformation Agenda.
He said Saccos continue to convert members’ savings into affordable financing for agriculture, housing, education, trade, micro and small enterprises and household needs.
“However, this growth must be supported by adequate liquidity, responsible pricing, sound governance and prudent risk management,” Oparanya said.
Deposit-taking Saccos (DT-Saccos) recorded the highest growth in gross loans and advances, with their portfolio rising by 12.98 per cent from Ksh744.36 billion in 2024 to Ksh840.99 billion in 2025.
Non-withdrawable deposit-taking Saccos (NWDT-Saccos), meanwhile, recorded slower growth of 6.87 per cent, with gross loans increasing from Ksh100.75 billion to Ksh107.68 billion.
The report shows that 151 DT-Saccos recorded positive growth in gross loans in 2025, up from 149 in 2024.
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Of these, 97 Saccos recorded growth of more than 10 per cent, with cumulative loan growth of Ksh82.43 billion. Another 30 recorded growth of between five and 10 per cent, contributing Ksh11.55 billion, while 24 recorded growth of between zero and five per cent, contributing Ksh3.51 billion.
Overall, DT-Saccos recorded aggregate loan growth of Ksh97.48 billion in 2025, compared with Ksh78.75 billion in 2024.
However, 28 DT-Saccos recorded declines in their gross loans. Fifteen reported declines of between zero and five per cent, seven recorded declines of between five and 10 per cent, while six registered declines exceeding 10 per cent.
The six Saccos in the latter category recorded a combined reduction of Ksh2.09 billion in gross loans.
The regulator said it continues to pay particular attention to Saccos recording loan growth of more than 10 per cent because rapid expansion can expose institutions to increased credit risk and potential
The number of NWDT-Saccos recording positive loan growth declined to 124 in 2025, compared with 137 in 2024 and 141 in 2023.
Of the 124 Saccos, 54 recorded growth of more than 10 per cent, translating into an increase of Ksh7.31 billion in gross loans.
Forty recorded growth of between five and 10 per cent, adding Ksh1.61 billion, while 30 recorded growth of between zero and five per cent, contributing Ksh320 million.
The cumulative growth among NWDT-Saccos with positive loan growth declined to Ksh9.24 billion from Ksh10.14 billion in 2024.
Another 54 NWDT-Saccos recorded negative loan growth. Twenty-eight reported declines of up to five per cent, 11 recorded declines of between five and 10 per cent, while 15 registered declines exceeding 10 per cent.
Overall, the NWDT-Sacco sector recorded a net increase of Ksh8.28 billion in gross loans in 2025, down from Ksh9.85 billion in 2024.
The report also points to an improvement in the quality of Sacco loan portfolios during the year.
Gross loans and credit advances accounted for 73.32 per cent of total assets in the regulated Sacco industry in 2025, making lending the largest component of Sacco assets.
Loans classified as performing increased to 88.41 per cent of total gross loans in 2025, up from 86.71 per cent in 2024.
However, loans in the “watch” category increased from Ksh41.40 billion in 2024 to Ksh49.54 billion in 2025. These loans, which are overdue by between one and 30 days, accounted for 5.22 per cent of total gross loans.
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The report identifies the watch category as an early warning indicator because such loans can deteriorate into substandard, doubtful or loss categories if not effectively managed.
Substandard loans, which are overdue by between 31 and 180 days, increased slightly from Ksh22.41 billion to Ksh23.18 billion.
Doubtful loans, overdue by between 181 and 360 days, declined from Ksh9.70 billion to Ksh9.39 billion.
The largest improvement was recorded in loans classified as losses. These loans, which have been outstanding for more than 360 days, fell sharply from Ksh38.76 billion in 2024 to Ksh27.88 billion in 2025.
The improvement in loan performance was reflected in a decline in non-performing loans (NPLs).
NPLs, comprising substandard, doubtful and loss loans, fell from Ksh70.87 billion in 2024 to Ksh58.37 billion in 2025.
Consequently, the industry’s NPL ratio declined from 8.39 per cent to 6.37 per cent during the period.
The report attributed the improvement mainly to reductions in doubtful and loss loans, which it linked to increased loan recovery efforts by regulated Saccos.
Meanwhile, the allowance for loan losses increased by 9.53 per cent from Ksh55.69 billion in 2024 to Ksh61 billion in 2025.
Despite the increase in provisions, net loans and advances rose from Ksh789.42 billion to Ksh887.67 billion.
By Obegi Malack
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