Focus on thriving SACCO landscape

Savings and Credit Cooperative Societies (SACCOs) have become immensely popular in Kenya, garnering widespread recognition for their fundamental role in enhancing economic empowerment.

Their increasing popularity is evident in the latest report from SASRA, the regulatory authority overseeing SACCOs in Kenya. In August 2023, SASRA published the yearly report, outlining the performance of SACCOs in Kenya as of the conclusion of 2022.

Here are some key points to take away from this report:

• The collective membership of Regulated SACCOs experienced a 7.02% growth, reaching 6.42 million members in 2022 compared to the 5.99 million members recorded in 2021.
• The total assets of these SACCOs increased by 10.31%, reaching Kshs 890.31 billion in 2022.
• Total deposits mobilized witnessed a growth of 9.84%, reaching Kshs 620.45 billion during the same period.
• Regulated SACCOs extended loans and other credit advances totaling Kshs 680.35 billion in 2022, indicating a noteworthy increase of 11.76%.

This report indicates positive trends in membership, financial strength, deposit mobilization, and credit extension, showcasing the overall health and growth of the regulated SACCOs in Kenya.

In the context of the thriving SACCO landscape, Stima Sacco Society Ltd emerges as a notable and rapidly expanding SACCO, with a membership exceeding 200,000 individuals, and an asset base surpassing Kshs. 55 billion.

Serving a diverse customer base that includes individuals with low, middle, and high incomes, financial investment groups, SMEs, and large corporations, the SACCO delivers a broad range of financial services. This includes savings products, credit options, and investment services.

Through these financial offerings, Stima SACCO and other SACCOs in Kenya have played a crucial role in shaping the nation’s financial landscape. These cooperative entities, owned by their members, have significantly influenced society, as outlined below:

1. Financial inclusion: SACCOs have been instrumental in advancing financial inclusion by extending their services to individuals and communities with limited access to traditional banking services.
2. Access to credit: SACCOs have empowered their members by granting them access to cost-effective credit. Members can secure loans for various purposes such as business ventures, education, and housing.
3. Educational opportunities: SACCOs frequently offer financial education and training to their members, elevating financial literacy and enabling individuals to make well-informed financial decisions.
4. Savings culture: SACCOs encourage a culture of savings among their members. By making consistent contributions and savings, members develop financial discipline and resilience.
5. Establishing Networks: SACCOs cultivate a community and social capital within their membership. The cooperative structure promotes networking, collaboration, and mutual support, nurturing a feeling of belonging and shared economic objectives among members.
6. Job creation: Through extending credit to members for entrepreneurial pursuits, SACCOs have contributed to nurturing entrepreneurship and generating employment opportunities. Small businesses funded by SACCO loans play a part in the development of the local economy.
7. Integration of technology: Many SACCOs have adopted technology, incorporating mobile banking and digital platforms to enhance efficiency and accessibility. This technological integration is in line with broader financial inclusion objectives.

Through accessible savings, credit facilities, and a commitment to community, SACCOs illuminate a path toward a more successful and inclusive financial future for all.