The Kenya Savings and Credit Cooperatives (SACCOs) Industry (“the Industry”) remains an important component of Kenya’s financial ecosystem, fostering financial intermediation and inclusion. Over the last five years, the Industry’s total deposits have grown at a Compounded Annual Growth Rate (CAGR) of 10.2%, reaching KSh 831.9 billion as at 31 December 2025[1], supported by continued membership growth and sustained demand for SACCO credit, which incentivises members to increase savings in order to access larger loan facilities. The Deposit-Taking (DT) SACCOs segment dominates the Industry, accounting for 87.4% of total deposits and 88.4% of total assets. However, this concentration exposes the Industry to various risks, including liquidity, investment and governance risks, as stress on larger SACCOs could have a disproportionate impact on overall Industry stability and members’ confidence
Looking ahead, the performance of DT and NWDT SACCOs is likely to remain differentiated by their scale, capacity to invest in emerging technologies, risk management and product development. Industry growth will, however, be constrained by high non-performing loans, increasing regulatory and compliance requirements, rising cybersecurity risks and intensifying competition from other financial services providers. We note that regulatory reforms continue to shape the Industry, with successful implementation of regulations such as the SACCO Societies (Amendment) Bill, 2025, expected to shift the Kenya SACCOs industry towards a more formal regulatory framework, thereby improving resilience and sustainability but potentially increasing compliance costs, hence encouraging consolidation among smaller SACCOs. Notwithstanding, the Kenya Union of Savings and Credit Cooperatives (KUSCCO) ongoing governance and financial challenges, predicated on the 2025 crisis and the subsequent approval of its liquidation by its shareholders, is likely to reinforce market scrutiny of governance, risk management and financial resilience across the Industry, with near-term growth potentially moderating as SACCOs adopt more conservative practices.
The 2026 Kenya SACCOs Industry Risk Report captures the following:
