The Kenya Savings and Credit Cooperatives Societies (SACCOs) Industry (‘the Industry’) plays a vital role in the financial landscape by offering financial services focused on mobilising funds and providing affordable credit. The Industry uniquely positions members as both co-owners and users, granting them governance rights and setting SACCOs apart from traditional financial institutions. SACCOs strong community ties and rural reach further enhance financial inclusion across the country. Over the last five years, the Industry’s total asset has risen at a compound annual growth rate (CAGR) of 11.8% and is estimated at Kshs 1,034.1 billion as at 31 December 2024. Agusto & Co. projects a 6.4% growth in the SACCO industry’s total assets by year-end 2025, underpinned by an expansion in the loan book, increased member savings, and the accumulation of income-generating assets. Similarly, total deposits – estimated at circa Kshs 726.5 billion as of 31 December 2024 – are expected to grow to Kshs 773.6 billion by end-2025, supported by anticipated macroeconomic recovery. In November 2024, a forensic audit uncovered massive financial irregularities at the Kenya Union of Savings and Credit Cooperatives (KUSCCO), including asset overstatements, forged signatures, and diversion of funds, resulting in a reported loss of Kshs 13.3 billion. Agusto & Co. notes that this crisis highlights broader structural weaknesses and calls for urgent reforms to improve governance, risk management, and regulatory enforcement across the industry. Despite lingering concerns around fraud and corporate governance lapses, which may dampen new membership growth and trigger withdrawals among disillusioned members, deposit mobilisation is likely to be sustained by continued savings remittances from long-term members.
The 2024 Kenya Insurance Industry Risk Report captures the following:
