Saccos sector in Kenya registered an average growth of 10 per cent in 2024 to hit a record Ksh1.8 trillion $13.9 billion) in assets with members enjoying an average of 10 per cent returns in form of dividends. 

Commissioner for Co-operatives Development David Obonyo said that currently, the Sacco loan book stands at over Ksh1.1 trillion ($8.5 billion) and the savings at over Ksh1.2 trillion ($9.3 billion).

“The Sacco movement holds around 30 per cent of Kenya’s savings and I want to assure all Kenyans who have savings in the Saccos that we have an elaborate legal framework, policy and guidelines that ensure that the funds are safe and secure,” Obonyo assured.

Speaking in Nairobi when Co-operative Alliance of Kenya (CAK) launched pre-Ushirika Day events on Thursday, Obonyo said that as government, they had established the Sacco Societies Regulatory Authority (SASRA) that undertakes inspection and regulation of Saccos in the country to ensure that the institutions operate within the law to guarantee the safety of members’ savings.

The commissioner revealed that in February 2025, Saccos in Nairobi had paid out over Ksh35 billion ($27 million) to members in the form of interest and dividends. In addition, Obonyo said, for Saccos to be competitive, they need to embrace technology. Consequently, the ministry had developed a concept to have a central liquidity and shared platform as part of the legal framework to enable the cooperatives to share technology and lend money to each other.

Co-operative Alliance of Kenya Chair Macloud Malonza said the Sacco movement has registered tremendous growth and needed to advance to the next level. Therefore the movement is advocating for a new law that will allow cooperatives to get into the payment system and start offering other financial services like issuing bankers cheques.

“We want to enhance our financial inclusivity so we can reach out to the marginalised in society, which is in line with our theme for this year’s Ushirika Day celebration. Our theme is “Driving Inclusive and Sustainable Solutions for a Better World,” Malonza explained.

He said that cooperatives are investing more in ICT and research to know what the customers want to enable them to compete with other players in the financial sector.

“We are also conducting capacity building for our Sacco leaders through the African Confederation of Cooperative Savings and Credit Associations (ACCOSCA). Some of our Saccos are growing big and we forecast that in the next three years, we will have some with assets of over Ksh100 billion ($773 million) with of assets and therefore we need well trained managers to oversee the institutions,” Malonza said.   

CAK Chief Executive Officer Daniel Marube said that the United Nations has proclaimed 2025 as the Year of Cooperatives, which he said is an achievement for the movement.

“In preparation for the Ushirika Day this year, we will conduct several activities including a blood donation drive, a tree planting exercise and exhibitions among other activities,” Marube said. 

• A Tell Media / KNA report / by Joseph Ng’ang’a