- Ksh950 billion of Sacco assets already lent to members
- Saccos say Ksh1.2 trillion assets are not idle cash
- Sector clarifies loans account for nearly 80 per cent of Sacco assets
Kenya’s Sacco sector has clarified that its Ksh1.2 trillion asset base does not represent cash held in bank accounts, noting that nearly 80 per cent of the assets have already been disbursed to members as loans.
Speaking during an interview with a local television station on July 14, Stima DT Sacco Chief Executive Officer Gamaliel Hassan said public discussions on Sacco finances have misrepresented the sector’s financial position by creating the impression that cooperatives are holding vast amounts of idle cash available for investment.
According to Hassan, the sector’s assets stand at about Ksh1.2 trillion, with nearly Ksh950 billion already issued as loans to members, leaving roughly Ksh250 billion in reserves for growth and institutional stability.
“We are not sitting on a cash pile of Ksh1.2 trillion to be given out. Most of those resources have already been lent to members, while the reserves are meant to support expansion and capital growth,” he said.
Hassan noted that lending remains the core business of Saccos, with loans to members accounting for approximately 78 per cent of the sector’s total assets.
He added that member deposits make up about 73 per cent of the industry’s portfolio and are primarily mobilised to finance affordable loans, rather than being held as idle cash.
“For us, having a loan portfolio of about 78 per cent means we are doing exactly what Saccos were created to do collect members’ savings and lend them back to members at affordable rates,” he said.
Using Stima DT Sacco as an example, Hassan said the institution’s Ksh75.3 billion asset base reflects the broader structure of the Sacco industry, where loans constitute the largest portion of assets.
He added that the cooperative movement continues to register steady growth, with between 10 million and 14 million Kenyans currently belonging to Saccos out of a population of about 55 million, highlighting the sector’s significant growth potential.
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Hassan’s remarks come as the government moves to dispel claims that members’ Sacco savings will be used to finance the National Infrastructure Fund (NIF).
The efforts follow growing public concern over the proposed Sacco Societies (Amendment) Bill, 2025, amid widespread misinformation alleging that the legislation would give the government sweeping powers over members’ deposits and the management of cooperative societies.
By Frank Mugwe
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