- Saccos increased investments across several financial instruments
- Cooperative institutions attracted the largest share of investments
- Saccos diversified holdings amid losses linked to KUSCCO
Regulated Savings and Credit Cooperative Societies (Saccos) increased their investments in cooperative institutions, government securities and collective investment schemes in 2025.
According to the 2025 Sacco Supervision Annual Report by the Sacco Societies Regulatory Authority (SASRA), regulated Saccos’ financial investments were spread across government securities, placements and shares in National Cooperative Organisations (NACOs), investments in other Saccos, listed companies, unit trusts and money market funds.
The largest portion was held in shares in NACOs, which rose from Ksh19.31 billion in 2024 to Ksh29.99 billion in 2025.
Placements in NACOs also increased significantly, rising from Ksh14.33 billion to Ksh25.68 billion during the period.
The report attributed the growth to stronger inter-Sacco cooperation, increased confidence in cooperative institutions, improved liquidity management and the need to strengthen ownership and participation within the cooperative movement.
Investments in government securities increased from Ksh21.35 billion in 2024 to Ksh23.64 billion in 2025. Despite the increase in value, their share of the investment portfolio declined as other investment categories grew faster.
Saccos also increased their exposure to money market funds and unit trusts, with investments rising sharply from Ksh5.52 billion to Ksh19.75 billion.
Investments in other listed companies edged up from Ksh710 million to Ksh750 million.
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The sector also recorded its first reported investment in green bonds, valued at approximately Ksh200 million, as Saccos diversified into sustainable investment instruments.
The investment figures come against the backdrop of the financial crisis at the Kenya Union of Savings and Credit Cooperatives (KUSCCO), which historically served as a central financing and umbrella institution for Saccos.
Speaking during the release of the 2025 Sacco Supervision Annual Report, Cooperatives and Micro, Small and Medium Enterprises (MSME) Development Cabinet Secretary Wycliffe Oparanya said efforts to revive KUSCCO had failed due to its deep insolvency.
Sacco members subsequently resolved to place the umbrella body under liquidation in accordance with the Cooperative Societies Act and other applicable laws.
Saccos that had placed shares and deposits with KUSCCO have since made provisions for the losses in line with applicable financial reporting standards.
According to Oparanya, the outstanding balance reported by Saccos in KUSCCO stood at Ksh7.76 billion, down from the previously reported Ksh16.1 billion.
He said the provisions were necessary because the affected funds could no longer be considered recoverable.
The Commissioner for Cooperative Development had appointed Waithaka Ngaruiya of Waithaka and Associates as KUSCCO’s liquidator for a period not exceeding one year.
Ngaruiya has been authorised to take custody of KUSCCO’s assets, books and other documents required to complete the liquidation process.
The shift in Sacco investment patterns comes as the sector seeks to diversify its assets and reduce concentration risks while maintaining liquidity and safeguarding members’ funds.
By Obegi Malack
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