Kenyans borrowed more money for land and housing than any other purpose through Savings and Credit Cooperative Societies (SACCOs) in 2025 as lending by regulated institutions approached the Ksh1 trillion mark.
The SACCO Societies Regulatory Authority (SASRA) said gross loans and advances issued by regulated SACCOs rose to Ksh948.67 billion in 2025 from Ksh845.11 billion in 2024.
According to the SACCO Supervision Annual Report 2025, land and housing accounted for the largest share of SACCO lending at Ksh157.20 billion.
Education emerged as the second-largest beneficiary of loans at Ksh124.51 billion, followed by agriculture at Ksh110.74 billion.
The figures show property, education and agriculture remained the three biggest beneficiaries of SACCO credit, accounting for Ksh392.45 billion of the industry’s loan portfolio.
SACCOs in 2025
The increase in lending came as the regulated SACCO sector recorded strong growth during the year.
SASRA said total assets rose by 12.5 per cent to Ksh1.21 trillion from Ksh1.08 trillion in 2024.
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Members’ deposits and savings also increased to Ksh832.74 billion from Ksh749.43 billion a year earlier, providing additional resources for lending.
The report showed that deposit-taking SACCOs continued to account for the bulk of the industry’s assets, with their asset base reaching Ksh1.07 trillion during the year, while non-withdrawable deposit-taking SACCOs expanded their assets to Ksh141.36 billion.
The increase in deposits also came alongside growth in membership and continued uptake of SACCO products, helping drive expansion across both urban and rural markets.
Sector Continues Strong Growth
The report showed that profitability improved during the year as net income after tax rose by 24.95 per cent to Ksh33.85 billion.
SASRA attributed the industry’s performance to sustained growth in assets, savings and lending activities among regulated institutions.
The regulator said the sector remained resilient, with key performance indicators continuing on an upward trajectory.
The increase in gross loans and advances by more than Ksh103 billion during the year underscored the growing appetite for credit among SACCO members.
At the same time, total assets remained above the Ksh1 trillion mark first achieved in 2024.
SASRA said increasing deposits and savings remained the primary source of funding for member loans, making them a critical component of the industry’s growth model.
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The regulator added that continued growth in lending demonstrated the important role SACCOs play in providing access to credit for households, farmers, businesses and other borrowers.
Large SACCOs Dominate Industry Assets
Even as the sector expanded, the report revealed that a relatively small number of institutions continued to dominate the industry.
SASRA classifies regulated SACCOs into three categories based on asset size: large-tier institutions with assets above Ksh5 billion, mid-tier institutions with assets between Ksh1 billion and Ksh5 billion, and small-tier institutions with assets below Ksh1 billion.
According to the report, 61 large-tier SACCOs controlled 77.62 per cent of the industry’s total assets in 2025.
The institutions accounted for just 17.09 per cent of the 357 regulated SACCOs operating during the year.
The number of large-tier SACCOs increased from 60 in 2024 to 61 in 2025 after Parliamentarians SACCO crossed the Ksh5 billion asset threshold.
SASRA said the concentration of assets among a small number of institutions allows for targeted risk-based supervision but also points to the need for measures that support medium and small-tier SACCOs.
The regulator expressed confidence in the long-term prospects of the industry, citing continued growth in assets, deposits, lending and profitability.
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