- Sandagi highlights Saccos’ role in building trust in Kenya’s credit market
- Peer guarantorship helps members access formal financial services
- Regulated Saccos now serve 7.87 million members with Ksh1.21 trillion in assets
The Sacco Societies Regulatory Authority (SASRA) has highlighted the growing role of Savings and Credit Cooperative Societies (Saccos) in promoting financial inclusion and strengthening trust in Kenya’s credit market.
SASRA Chief Executive Officer David Sandagi made the remarks during the 3rd National Credit Market Convention, where he delivered a presentation titled “SACCOs as Trust Infrastructure.”
Sandagi said Saccos play an important role in connecting informal social capital with formal financial systems through mechanisms such as peer guarantorship and common bond lending. He explained that these approaches enable Saccos to transform social trust among members into access to formal financial services, particularly for people who may face challenges accessing conventional credit.
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The SASRA CEO also stressed the need for sound regulation and effective governance to strengthen confidence and stability within the Sacco sector. He further identified Credit Information Sharing (CIS) as an important tool in improving the soundness of the industry and strengthening confidence among members and other stakeholders.
The convention also featured the release of the latest edition of the Voice of Data magazine, which profiles Sandagi and highlights his insights into Kenya’s trillion shilling Sacco sector.
According to SASRA, the regulated Sacco industry has continued to expand and currently comprises 357 regulated Saccos serving 7.87 million members. The sector holds assets valued at approximately Ksh1.21 trillion, underscoring its growing contribution to Kenya’s financial system and economic development. The developments highlight the importance of strong regulation, governance and responsible credit practices in sustaining growth in the Sacco industry.
By Bernard Magada
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