Kenya’s deposit-taking savings and credit co-operative societies (Saccos) recorded strong growth in 2025, with their assets exceeding KES1 trillion (US$7.72 billion), even as lending expanded faster than deposits, raising the need for stronger savings mobilisation.
According to the latest industry report by the Sacco Societies Regulatory Authority (SASRA), deposit-taking Saccos closed 2025 with assets of KES1.1 trillion (about US$8.49 billion), up 13.2 per cent from KES944.9 billion (US$7.30 billion) in 2024.
Non-withdrawable deposit-taking Saccos recorded a 7.7 per cent recovery in asset growth, with their total assets reaching KES141.4 billion (about US$1.09 billion), compared with KES131.2 billion (about US$1.01 billion) in 2024. The category had contracted by 5.6 per cent in the 2023/2024 period.
The growth pushed the total assets of regulated Saccos to KES1.2 trillion (about US$9.27 billion) in 2025, an increase of approximately KES134 billion (US$1.04 billion) from the previous year.
Deposits lag behind loan growth
Total deposits across regulated Saccos grew by 11.12 per cent to KES832.74 billion (about US$6.43 billion) in 2025, up from KES749.43 billion (about US$5.79 billion) in 2024.
The deposits comprise non-withdrawable deposits, commonly known as back-office service activity (BOSA) deposits, withdrawable deposits held through front-office services (FOSA), and fixed deposits.
However, lending grew faster than savings. Gross loans and advances increased by 12.25 per cent to KES948.67 billion (about US$7.32 billion), compared with KES845.11 billion (about US$6.53 billion) in 2024.
Deposit-taking Saccos accounted for KES840.99 billion (about US$6.49 billion) in gross loans and advances, while non-withdrawable deposit-taking Saccos accounted for KES107.68 billion (about US$831.5 million).
Lending by deposit-taking Saccos grew by 12.98 per cent, compared with 6.87 per cent for non-withdrawable deposit-taking Saccos. Deposit growth stood at 11.89 per cent and 6.13 per cent, respectively, for the two categories.
The figures indicate that Saccos are extending credit faster than they are attracting new deposits, which remain a key source of funds for lending.
Loan-loss provisions rise
The growth in lending came alongside an increase in provisions for potential loan losses. Regulated Saccos raised their loan-loss allowances by 9.53 per cent to KES61 billion (about US$471 million) in 2025, from KES55.69 billion (about US$430 million) in 2024.
After accounting for these allowances, net loans and advances stood at KES887.67 billion (about US$6.85 billion) at the end of December 2025, representing an annual increase of 12.45 per cent.
SASRA said the faster growth in lending did not pose an immediate regulatory risk to the sector because deposits continued to grow and monthly loan repayments helped fund new credit demand.
However, the regulator challenged Saccos to develop strategies to attract more member deposits to keep pace with rising demand for loans and sustain lending growth.
The figures highlight the sector’s expanding role in providing credit while underscoring the importance of strengthening savings mobilisation and managing credit.
