SACCOs are preferred choice for affordable and accessible loans, KNBS survey indicates

Savings and Credit Cooperative Organizations in Kenya are emerging as a preferred choice for affordable and accessible loans as demand for housing in the country.

According to the 2025 Economic Survey by The Kenya National Bureau of Statistics (KNBS), 31.8% of real estate firms partnered with SACCOs for financing arrangements in 2023, highlighting the growing role of SACCOs over other financial institutions.

This trend underscores how SACCOs are positioning themselves as key players in promoting inclusive and sustainable home ownership.

The report also indicated that loans to the private sector improved by 84.24 billion occasioned by improved confidence and favorable interest rates compared with other financial institutions.

The Survey also indicated that regulated SACCO assets soared by 11.21%, climbing from Ksh 971.96B to Ksh 1,090.87B in just one year.

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As of December 2024, Broad Money supply (M3) rose by 1.0% to Ksh 6.1 trillion. Domestic credit increased by 2.2% to Ksh 7.2 trillion, with a 6.6% drop in private sector lending and a 2.6% rise in public sector credit.

In 2024, Kenya’s real Gross Domestic Product (GDP) grew by 4.7 per cent compared to a revised growth of 5.7 per cent in 2023.

The growth, albeit slower than the previous year, was to a large extent supported by activities in Agriculture, Forestry & Fishing (4.6%), Financial & Insurance Activities (7.6%), Transportation and Storage (4.4%) and Real Estate (5.3%).

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Kenya’s trade volume rose to Ksh 3.8 trillion in 2024, up from Ksh 3.6 trillion in 2023, driven by increased imports and exports. Export earnings grew to Ksh 1.1 trillion, boosted by tea, apparel, oils, fruits, coffee, and jet fuel re-exports.

Imports rose to Ksh 2.7 trillion, mainly due to higher imports of rice, telecom equipment, plastics, machinery, and aircraft. With exports outpacing imports, the trade deficit narrowed to Ksh 1.594 trillion, and the export-import cover ratio improved to 41.1%.

By Obegi Malack

obegimalack@gmail.com

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