SASRA RANKS THE TOP PERFORMING DT SACCOS IN 2023

Regulated deposit taking Saccos in Kenya give more loans to their members in 2023 as their market share and asset base grows

By George Gichuki

Regulated  deposit taking ( DT)   Saccos in Kenya  have continued registering  steady growth. This is according to the 2023 Sacco  supervision annual report by the Sacco Societies Regulatory Authority ( SASRA).   For instance,  the gross loans from the regulated Saccos in 2023 grew by 11.5% to reach  Kshs. 758.7 billion, up from Kshs. 680.35 billion in 2022.

By the same token, the tier one Saccos ( with an  asset base of over  Kshs.5 billion), increased from  forty seven in 2022 to fifty three in 2023.  In the same vein,  at Kshs.706.21 billion, the net loan portfolio continued to constitute  the highest proportion of their  total assets in 2023, compared to Kshs. 640.72 billion  in 2022.   Additionally, their market share grew from 70.05 % in 2022, to 73.34% in 2023.  Notably, the aggregate core capital of this segment   of Saccos increased by 7.14% to reach Kshs. 133.81 billion in 2023, from Kshs. 124.84 billion in 2022.

Liquidity

Going by this report, regulated Saccos  are able to meet  their short term financial obligations as they fall due.  Their statutory liquidity was maintained at a rate of 64.45%, against the minimum threshold of 15%.  In another positive  development, the external borrowing ratio in the deposit taking Sacco  segment has been declining over the recent years.  This  demonstrates that  most of these players are using internally generated funds to extend credit to their members as opposed to external debts.

Delivery channels

In view  of  the  global   and  local  market  trends,  regulated Saccos have embraced  the use of technology, partnerships with fintechs and  commercial banks in a bid to enhance efficient service delivery to their respective  members.  The partnership with commercial banks entails the provision of automated teller machine ( ATM)  credit and debit cards,  PesaLink digital payment solution as well as cheque issuance, clearance and settlement.

 In the same vein, given the high costs that are involved in putting up  and  operating  physical branches ( brick and mortar delivery channel), most regulated DT Saccos have embraced the agency banking model. In the 2023 report by SASRA, thirty seven  players in this segment  brought on board 4,038 agents countrywide as at December 2023.  In total, these agents made 7.82 million transactions, with a value of  Kshs. 27.73  billion.

Top performers

Against this background, with an asset base of Kshs. 66.43 billion,  Mwalimu National Sacco was ranked the top regulated DT Sacco by SASRA  in 2023. Stima Sacco was ranked second with an asset base of Kshs. 59.15 billion, while Kenya National Police DT Sacco emerged third and its asset base was Kshs. 54.24 billion. The asset base of Mentor Sacco grew from Kshs. 11.77 billion in 2022 to Kshs.13.47 billion in 2023, and hence it was ranked fourteenth nationally,  up  from position  fifteen  2022.  Below is a table of how the top regulated DT  Saccos were ranked by SASRA in 2023: