Saccos Grow Deposits To Sh564.89bn In 2021

NAIROBI, Kenya August 5 – Saccos grew their total deposits by 9.8 per cent in 2021 to reach Sh564.89 billion from the sum of Sh514.46 billion in 2020, underscoring the resilience of the Kenyan SACCO business model in the wake of external shocks. 

According to the SACCO Supervision Annual Report, the 176-Deposit Taking SACCOs had the largest proportion of the total deposits’ portfolio amounting to Sh474.25 billion and representing 83.95 per cent of the industry’s total deposits.

The report notes that 185-Non withdrawable Deposit Taking SACCOs shared the remaining 16.05 per cent of the total deposits’ portfolio even though they outnumber the DT Saccos.

On the credit front, the subsectors’ gross loans increased by 9.67 per cent in 2021 to reach Sh608.75 billion from Sh555.05 billion reported in 2020.

The 176-DT-SACCOs’ share of the gross loans issued by SACCOs amounted to Sh522.25 billion representing 85.79% of the gross loans issued.

The 185-NWDT-SACCOs share of the gross loans amounted to Sh86.50 billion and representing 14.21 per cent of the industry gross loans.

Notably, high retention of surplus led to increased industry capitalization during the year 2021 giving SACCOs the much-needed funding to invest back in the business.

Total membership stood at 5.99million by end 2021 with majority (47 per cent) affiliated to 49-agriculture-based SACCOs followed closely by membership from 117-government-based SACCOs at 35 per cent.

The non-remittances by institutions to SACCOS remain a challenge at Sh3.4billion, a 32 per cent drop from the Sh5billion reported in 2020.

While Public Universities and Tertiary Colleges account for 38 per cent of the total non-remitted, they also registered most drop of 56 per cent to end with Sh1.29billion owed from Sh2.95billion owed in 2020.