The SASRA Sacco Supervision Report 2022 has revealed that total assets by the Sacco sub-sector grew by 11.79 per cent with those from Deposit Taking (DT) Saccos standing at Ksh763.50 billion while those from Non-Withdrawable Deposit Taking (NWDT) Saccos shot to Ksh126.80 billion up from Ksh116. 02 billion recorded in 2021.
The increase reflects a marginal increase from a proportion of 11.6 per cent of the total assets of the deposit-taking financial institutions in 2021 as it stood at Ksh691.09 billion.
The sub-sector gross loans accounted for 15.60 per cent in 2022 to reach Ksh586.16 posted by all the deposit-taking financial institutions in Kenya. This also represented a marginal increase in the proportion of gross loans in 2021 which stood at 15.54 per cent standing at 522.25 billion.
In NWDT Saccos, the gross loans reported growth to Ksh94.19 billion in 2022 from Ksh86. 50 billion the previous year.
On the deposits front, DT-Saccos grew to Ksh522. 59 billion in 2022 up from Ksh474. 25 billion reported in 2021.
For NWDT-Saccos, the customer deposits rose from Ksh90.64 billion in 2021 to Ksh97.86 billion in 2022.
“The analysis shows that Regulated Saccos’ total assets contribution to the national GDP remained constant at 6.66 per cent in 2022 as it was in 2021 with DT-Saccos’ segmental total assets to the national GDP being 5.71per cent in 2022 compared to 5.75per cent recorded in 2021, while the NWDT-Saccos’ segmental total assets to the national GDP stood at 0.95 per cent in 2022 compared to 0.96 per cent in 2021,” the Report read in part.
“The foregoing shows that the national GDP has for the second consecutive year grown at an almost the same rate as the rate of growth of the Regulated Saccos’ total assets as well as the segmental rate of growth,” it continued.
Consequently, the average interest rates paid by the Regulated Saccos on member deposits in 2022 marginally increased to 6.92 per cent in 2022 from 6.86 per cent paid in 2021.
“The DT-Saccos’ segment paid the highest rates on their members’ savings at 7.11 per cent in 2022 compared to the NWDT-Saccos which paid a mean interest rate of 7.10 per cent. These returns on members’ savings were however higher than the interest rates paid by commercial banks on savings which averaged 3 per cent during the year 2022, and thus cements the dual comparative edge of savings in Saccos which not only earns interest but also applied as collateral against loans advanced to members,” SASRA added.
In addition, the Regulated Saccos paid their members a return on their share capital at a mean rate of 10.47 per cent in 2022 compared to a mean rate of 9.87 per cent in 2021.
The DT-Saccos’ segment paid dividends on the members’ shares at a rate of 10.41 per cent in 2022 compared to a rate of 9.44 per cent in 2021; while the NWDT-Saccos’ segment on the other hand paid a return on the members’ shares as dividends at a rate of 10.92 per cent in 2022 from a rate of 10.55 per cent in 2021.
By Vostine Ratemo
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