Data recently released by Sacco Societies Regulatory Authority (Sasra) has revealed that 92,000 Sacco savers have savings of more than Ksh1 million.
The number represents an increase of 29.6 per cent from the 71, 000 reported in 2021. It is also more, than double the 39, 000 accounts that were holding such amount five years earlier.
The 92,000 accounts, an equivalent of 0.63 per cent of the total Ksh14.52 million accounts, hold Ksh163.28 billion or nearly a third (31.2 per cent) of the Ksh522.59 billion deposits held by Saccos regulated by SASRA.
“This analysis is thus a testament to the fact that the number of deposit accounts holding more than Ksh1 million grew at a faster rate of 29 per cent in 2022 than all other categories of deposit accounts while the growth rate in the amount of deposits held in the deposit accounts with more than Ksh1 million recorded the highest increase by 20.72 percent,” said SASRA in a report.
The rapid increase in the top savings from Ksh135.26 billion was despite the economic challenges that had seen the number of dormant members in deposit-taking (DT) and non-withdrawable deposit-taking (NWDT) Saccos jump from Ksh 1.18 million to Ksh1.22 million.
SASRA data showed about 93.06 per cent of the Ks14.52 million accounts were holding up to Ksh100, 000, leaving 6.94 per cent with deposits above Ksh100, 000.
This is in contrast with commercial banks where 2.9 per cent of the 64.02 million accounts were holding deposits above Ksh100, 000.
The growth in Saccos’s top deposits can be attributed to the higher returns when compared with commercial banks.
“These returns on members’ savings cement the dual comparative edge of savings in Saccos, which not only earns interest but is also applied as collateral against loans advanced to members,” said SASRA.
The Authority now hopes the proposed changes to provide for a framework of appointing trustees to oversee a Deposit Guarantee Fund (DGF) to protect savers from losses on their deposits will be passed, hence lead to a massive increase in the number of savers in Saccos.
By Vostine Ratemo
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