Kenya’s regulated SACCO sector has crossed a historic financial milestone, with total assets surpassing Kshs 1.2 trillion by the end of 2025, according to the latest Quarterly Statistical and Soundness Report released by the Sacco Societies Regulatory Authority (SASRA).
The report indicates that the total asset base of regulated SACCOs rose to Kshs 1,209.55 billion in December 2025, reflecting a year-on-year growth of 11.91 percent compared to the same period in 2024. The performance signals continued expansion of the cooperative financial sector, driven largely by strong member savings and sustained loan demand.
Strong Growth in Savings and Lending.
Member deposits remained the backbone of the cooperative movement, rising to Kshs 831.91 billion, an increase of 10.83 percent over the previous year. The steady growth in savings underscores the confidence that millions of members continue to place in SACCO institutions.
Lending activity also expanded significantly. Gross loans reached Kshs 948.31 billion, representing a 12.52 percent increase from December 2024. The strong loan book highlights the sector’s critical role in providing affordable credit to households and small enterprises across the country.
Meanwhile, the industry maintained robust earning capacity, recording total income of Kshs 172.44 billion by the close of the fourth quarter of 2025.
Improving Financial Health.
Beyond growth, the report points to improving financial stability within the sector. The quality of loan portfolios improved notably, with the Non-Performing Loan (NPL) ratio for Deposit-Taking SACCOs falling to 5.41 percent, down from 6.15 percent in 2024. The figure is steadily approaching the recommended benchmark of below 5 percent.
Liquidity levels also remained strong. Deposit-Taking SACCOs maintained a liquidity ratio of 74.50 percent, far above the statutory requirement of 15 percent, indicating a strong capacity to meet members’ withdrawal demands.
At the same time, the sector strengthened its capital position. Core capital increased to Kshs 190.96 billion, providing a solid financial cushion against potential economic shocks.
Credit Flowing Into the Economy.
SACCOs continued to play a vital role in financing key sectors of the economy. In the final quarter of 2025 alone, regulated SACCOs disbursed Kshs 135.48 billion in credit.
Land acquisition remained the single largest area of borrowing, accounting for Kshs 19.55 billion in loans during the quarter, highlighting the continued importance of property ownership among Kenyan households.
Agriculture also saw strong financing, particularly in crop farming and animal production, which received Kshs 13.44 billion and Kshs 12.81 billion respectively.
Overall, the Land and Housing sector accounted for 26.06 percent of total SACCO financing, while agriculture experienced a notable seasonal increase in borrowing. The share of agricultural financing rose sharply from 16.64 percent in September to 21.01 percent in December 2025.
DT-SACCOs and NWDT-SACCOs: Different Stability Profiles.
The report also highlights operational differences between Deposit-Taking SACCOs (DT-SACCOs) and Non-Withdrawable Deposit-Taking SACCOs (NWDT-SACCOs).
DT-SACCOs remain the dominant players in terms of scale and liquidity. Their NPL ratio improved significantly to 5.41 percent, down from 7.17 percent in September, reflecting better loan recovery and portfolio management.
NWDT-SACCOs also registered improvement, reducing their NPL ratio from 8.41 percent to 6.36 percent in the final quarter of the year.
In terms of capital strength, DT-SACCOs maintained a core capital-to-total assets ratio of 17.86 percent, comfortably above the regulatory minimum of 10 percent. NWDT-SACCOs recorded a lower ratio of 12.79 percent, reflecting a more constrained capital position.
Profitability levels for the two segments were almost identical. DT-SACCOs recorded a Return on Assets (ROA) of 4.09 percent, while NWDT-SACCOs posted 4.03 percent.
Liquidity levels, however, differed sharply. While DT-SACCOs maintained very high liquidity buffers, NWDT-SACCOs operated with tighter margins, posting a Liquid Assets to Short-term Liabilities ratio of 19.28 percent, still comfortably above the 10 percent regulatory requirement.
Outlook for the Sector.
Although the December figures are based on statutory periodic returns submitted by SACCOs, SASRA notes that the numbers may undergo slight adjustments once the institutions complete their audited financial statements.
Even so, the data portrays a sector that continues to expand while strengthening its financial foundations—demonstrating the growing importance of SACCOs as pillars of Kenya’s financial inclusion and grassroots economic development.
