By W, KNA
Cooperatives and MSMEs Development Cabinet Secretary, Wycliffe Oparanya has expressed optimism over the growth of Savings and Credit Cooperative Organization (SACCO) sector over the last decade.
He observed that membership enlisted in Regulated SACCOs grew to 7.4 million people by 2024 compared to ten years ago when only 3.08 million in 2014 while the total assets grew to Sh 1.08 trillion in December 2024 from a paltry Sh. 301.54 billion in 2014.
Releasing the SACCO Supervision Annual Report, 2024 today in Nairobi, the CS added that as of August 2025, total assets had increased to Sh 1.13 trillion and the deposits in the same month of August 2025 had reached Sh 806.37 billion
According to the report, total deposits grew to Sh 749.43 billion in 2024 from just about Sh 205.97 billion in 2014.
The CS lauded the Regulated SACCOs who he noted have largely embraced the use of ICT in their financial services delivery widening the reach of financial services and products offered by SACCOs in Kenya and thereby deepening financial inclusion in the Country.
“The usage of ICT in the provision of financial services is the way to go, in current age and times. ICT and electronically enabled financial services offers customers ease and convenience of doing business including access and usage.
It also reduces costs and expenses associated with physically offered financial services, while at the same time being attractive to the younger generation joining or intending to join SACCOs”, Oparanya noted.
He added that ICT further re-positions SACCOs’ existing comparative advantages to ward-off competition from other financial institutions such as commercial and micro-finance banks and Digital Credit Providers.
“My Ministry will continue to support SACCOs to adopt, deepen and embrace the usage of safe and secure ICT in their financial products and services offering as aligned to the national government’s digital economy vision and enshrined in the Bottom-Up Economic Transformation Agenda (BeTA)”, Oparanya said.
The CS however warned and asked SACCOs and the entire industry players to be wary of the cyber-threats which lurks behind the usage of ICT and fintech in provision of financial services and products.
He mentioned that the National Computer and Cybercrimes Coordination Committee (NC4) chaired by the Principal Secretary, Interior, has designated SASRA as the SACCO sub-sector Cyber Security Operations Centre under the Computer Misuse and Cyber Crimes Act made thereunder that has seen substantially decreased cyber security incidents within the SACCOs industry over the last 18 months.
The Report shows that Regulated SACCOs are shunning away from the use of traditional expensive brick and mortar branches to the more affordable, innovative and technologically driven “SACCO Agencies”, to deliver financial services and products to their membership.
The report further shows that there were 4,247 SACCO agents spread out across the country in 2024, and with transactions worth over shs 31.65 billion for and on behalf of the Regulated SACCOs.
The CS emphasized that a time has come for the SACCO sector to also explore market driven solutions of consolidations and mergers of the very many small BOSA-only SACCOs as this is the only way to ensure their financial viability and stability.
“I urge officials of SACCOs operating within the same or similar traditional economic and social common bonds, to immediately start conversations relating to mergers as a solution to their survival”, Oparanya said.
Sacco Societies Regulatory Authority (SASRA) Chairman Jack Ranguma said the regulated SACCO industry has grown in absolute terms, with a marked improvement as shown by the key financial performance indicators and stability parameters.
Notably, Ranguma added that it is in this year that they passed a trillion mark in total assets. “We believe that as we deploy strong regulatory tools, we will see much stronger growth”.
The release of the Report comes at a time when the Cooperative movement is marking the 2025 United Nations International Year of Cooperatives, which provides the action plan and deliverables during the celebrations and beyond.
The release of the report also marks 10 years-post the transition period of June 2014, when the full implementation of prudential regulations of SACCOs in Kenya commenced.