SACCOs Record Strong Growth as Deposits Hit Ksh832.7 Billion

Kenya's regulated SACCO sector recorded strong growth in 2025, with total deposits rising to Ksh832.7 billion from Ksh749.4 billion in 2024.

According to the Sacco Supervision Annual Report 2025 issued by the Sacco Societies Regulatory Authority (SASRA) on Monday, October 5, the increase represented an 11.1 percent year-on-year growth in deposits.

Deposit growth was largely driven by Deposit-Taking SACCOs (DT-SACCOs), whose deposits increased by 11.9 percent to Ksh726.5 billion in 2025 from Ksh649.3 billion in 2024.

DT-SACCO deposits accounted for 87.2 percent of total deposits held by regulated SACCOs during the year.

Non-Withdrawable Deposit-Taking SACCOs (NWDT-SACCOs) also recorded growth, with deposits rising by 6.1 percent to Ksh106.2 billion from Ksh100.1 billion in 2024.

The increase marked a recovery for NWDT-SACCOs after deposits declined by 6.4 percent in 2024.

The sector has recorded sustained growth in deposits over the years, particularly among DT-SACCOs. 

In 2020, DT-SACCO deposits stood at Ksh431.5 billion before rising to Ksh474.3 billion in 2021 and Ksh522.6 billion in 2022.

They increased further to Ksh575.2 billion in 2023 and Ksh649.3 billion in 2024 before reaching Ksh726.5 billion in 2025.

NWDT-SACCO deposits, meanwhile, rose from Ksh83 billion in 2020 to Ksh90.6 billion in 2021 and Ksh97.9 billion in 2022. 

They increased to Ksh107 billion in 2023 before falling to Ksh100.1 billion in 2024 and recovering to Ksh106.2 billion in 2025.

The growth in deposits came as the overall SACCO industry expanded its membership and asset base during the year.

Regulated SACCO membership rose by 6.6 percent to 7.87 million in 2025 from 7.39 million in 2024.

However, dormant membership grew at a faster rate, increasing by 14.1 percent to 1.90 million from 1.67 million, while active membership increased by 4.4 percent to 5.97 million.

The sector closed 2025 with total assets of Ksh1.21 trillion, representing a 12.5 percent increase from Ksh1.08 trillion recorded in 2024.

SASRA reported that total SACCO assets have increased by Ksh817.9 billion since 2016, when they stood at Ksh392.8 billion. This represented a compound annual growth rate of 13.3 percent.

Asset growth also accelerated during the year, rising to 12.5 percent in 2025 from 10.7 percent in 2024 and 9.2 percent in 2023, making 2025 the strongest annual expansion in the latest three-year period.

The financial performance of regulated SACCOs also improved, with total income increasing by 12.9 percent to Ksh172.83 billion in 2025.

Net income after tax rose by 25 percent to Ksh33.85 billion, indicating stronger profitability across the sector.

Interest income from loans remained the dominant source of revenue, generating Ksh138.14 billion and accounting for 79.9 percent of total income.

Net financial income also increased by 13.7 percent to Ksh97.45 billion during the year.

Kenya also maintained its position as Africa’s leading SACCO market based on 2024 global data, with the country ranking 13th worldwide.

The sector recorded assets worth $8.34 billion, loans of $6.55 billion and savings and shares of $5.81 billion in 2024.

Kenya’s SACCO sector comprised 355 SACCOs serving 7.39 million members, translating to an average of about 20,804 members per SACCO.

The country ranked first in Africa, with SACCO assets nearly seven times those of Ethiopia at $1.21 billion and more than 14 times Ghana’s $0.58 billion.

Kenya also led the continent in loans, with $6.55 billion, and savings and shares, with $5.81 billion, despite Ethiopia having 22,850 credit unions compared with Kenya’s 355 SACCOs.

This comes months after Co-operatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya announced new measures aimed at tightening accountability in the auditing of SACCO financial statements.

Speaking on Thursday, September 25, Oparanya directed SASRA and the Commissioner of Co-operatives to enforce stricter oversight in the preparation and auditing of SACCO accounts.

First, Oparanya instructed that internal auditors must render their opinions on financial statements before the documents are submitted for external auditing. 

This, he said, will ensure a stronger internal control mechanism and safeguard against errors or misstatements at an early stage.

"Ensure that internal auditors of SACCOs render their opinions on the financial statements and reports, prior to such financial statements being subjected to external auditing," he said.

Oparanya also ordered SASRA and the Commissioner to take firm action against external auditors who fail to provide services in line with the SACCO Societies Act and its regulations.

"Institute appropriate actions against external auditors who internally fail to render external auditing services in accordance with the SACCO Societies Act and Regulations, including referral of such external auditors to ICPAK for additional sanctions," he added.

In addition, Oparanya directed that all financial reports and statements be countersigned by the Chief Executive Officers and Finance Officers who prepare them, alongside the Board of Directors. 

This, he said, is intended to hold both management and directors equally accountable for the disclosures in SACCO financial reports.

"Ensure that all financial reports and statements are countersigned by the Chief Executive Officers and Finance Officers who prepared them, in addition to the Board of Directors. This will hold both management and the Board of Directors responsible for the disclosures in the statements," he further said.