Savings and Credit Co-operative Organizations (Saccos) in Kenya recorded robust growth in 2024, registering a 10 percent increase in total assets to reach an all-time high of Sh1.8 trillion, with members earning an average of 10 percent in dividends and interest on their savings.
This impressive growth was confirmed by Commissioner for Co-operatives Development David Obonyo, who noted that the Sacco loan portfolio now exceeds Sh1.1 trillion, while total member savings have grown to over Sh1.2 trillion. He emphasized the sector’s critical role in Kenya’s financial ecosystem, revealing that Saccos hold approximately 30 percent of the nation’s savings.
Obonyo assured members of the safety of their deposits, stating that the government has implemented a comprehensive legal and regulatory framework to safeguard Sacco funds. “We have an elaborate legal framework, policy and guidelines that ensure that the funds are safe and secure,” he said, speaking in Nairobi during the launch of pre-Ushirika Day activities organized by the Co-operative Alliance of Kenya (CAK).
To bolster confidence in the sector, Obonyo highlighted the role of the Sacco Societies Regulatory Authority (SASRA), which conducts regular inspections and enforces compliance to ensure Saccos operate within established guidelines. He revealed that earlier this year, Saccos in Nairobi alone disbursed over Sh35 billion in dividends and interest payouts to members.
Recognizing the need to remain competitive in an evolving financial landscape, Obonyo also announced plans for a central liquidity and shared technology platform, which would allow Saccos to pool resources, share financial technology, and enhance inter-lending capabilities. This proposal is part of the Ministry’s broader legal reform initiative.
CAK Chairman Macloud Malonza welcomed the sector’s upward trajectory, stressing the need for legal reforms that would allow Saccos to enter the mainstream payments ecosystem, including the issuance of banker’s cheques and other financial services. “We want to enhance our financial inclusivity and reach out to the marginalized in society,” Malonza said, echoing this year’s Ushirika Day theme: “Driving Inclusive and Sustainable Solutions for a Better World.”
Malonza also emphasized the importance of ICT adoption and customer-driven research to maintain a competitive edge. He disclosed that some Saccos are now approaching the Sh100 billion asset mark, underscoring the need for well-trained managers. To that end, CAK is working closely with the African Confederation of Cooperative Savings and Credit Associations (ACCOSCA) to build leadership capacity across the movement.
CAK CEO Daniel Marube added that the recognition of 2025 as the International Year of Cooperatives by the United Nations is a major milestone for Kenya’s cooperative movement. He credited the sector for its tangible contributions to food production, housing, clean water provision, environmental sustainability, and financial inclusion.
As part of the run-up to Ushirika Day, Marube announced a series of community-focused activities including a blood donation drive, tree planting exercises, and exhibitions, aimed at deepening the cooperative sector’s social impact.
