The Sacco industry in Kenya has emerged as a cornerstone of the country’s socio-economic development, playing a critical role in providing employment opportunities, and supporting economic growth across various sectors.
According to the 2023 Sacco Annual Supervision Report, released by the Sacco Societies Regulation Authority (SASRA) in early September, the sector’s impact on employment has been substantial.
In 2023 alone, the Sacco industry employed a total of 11,883 individuals under long-term contracts that include pensionable terms, underscoring its importance as a stable source of jobs. This figure only accounts for employees within the 357 regulated Saccos in Kenya, highlighting the industry’s vast capacity to generate employment for thousands of Kenyans.
The report reveals that Deposit-Taking (DT) Saccos were the biggest employers within the industry. They employed a total of 10,622 individuals, representing 89.39% of all employees within regulated Saccos marking an impressive increase in the number of people employed by DT Saccos, showcasing their continued growth and expansion.
Meanwhile, Non-Withdrawal Deposit Taking (NWDT) Saccos employed 1,261 individuals in the same year, representing 10.61% of the total workforce. Although this was a slight decrease from the previous year, when NWDT Saccos employed 1,312 people, it remains a notable contribution to employment in Kenya.
The 2023 employment figures reflect a broader trend within the Sacco industry, where long-term job stability is a key characteristic. A substantial 82.55% of Sacco employees, or 9,810 individuals, were employed on permanent and pensionable terms, or on long-term contracts lasting three years or more.
Of this number, 8,786 individuals were employed by DT Saccos, while 1,024 were employed by NWDT Saccos, further emphasizing the importance of these institutions in providing job security.
Additionally, regulated Saccos hired 2,073 individuals on short-term contracts of less than three years, accounting for 17.45% of the total workforce. This marks a slight increase in temporary employment, showing that the sector is offering a range of job opportunities.
One of the most notable aspects of the Sacco industry is its commitment to promoting gender equality in the workplace. The 2023 report highlighted that women have slightly outnumbered men in employment opportunities within regulated Saccos for two consecutive years.
In 2023, 6,107 women were employed by regulated Saccos, compared to 5,776 men. This represents a positive shift towards gender balance in a sector that has historically been dominated by men.
The gender breakdown within DT Saccos shows that 5,420 women were employed in 2023, compared to 5,171 men. Meanwhile, NWDT Saccos employed 657 women and 604 men. This near gender parity shows the Sacco industry’s progressive approach to hiring, ensuring that women have equal access to employment opportunities.
The trend towards greater gender equality is also evident in leadership positions within Saccos. In the NWDT Sacco segment, 46.11% of Chief Executive Officers (CEOs) were women in 2023, up from 43.17% in 2022. This is a significant achievement for the sector, reflecting the growing recognition of women’s leadership capabilities. In DT Saccos, the percentage of female CEOs was lower at 23.43%, but still showed a marginal increase from 22.73% in 2022.
Beyond employment and gender equality, the Sacco industry plays a vital role in Kenya’s economic sectors. Saccos operate across various industries, including agriculture, trade, manufacturing, education, healthcare, land and housing, and finance. This broad reach means that the industry supports not only job creation but also economic growth in this key sector.
As Kenya continues to recover from the economic challenges, the Sacco industry remains a beacon of hope for many Kenyans seeking employment and financial stability. With its continued expansion, focus on job creation, and commitment to gender equality, the Sacco sector is well-positioned to contribute to the country’s socio-economic development for years to come.
