Saccos member deposits up by 9.8pc to 564b

DT-Sacco segment controlled the largest proportion of both deposits and gross loans. [iStockphoto]

Deposits by Sacco members increased by Sh50.43 billion to Sh564 billion in 2021, translating into a year-on-year growth of 9.8 per cent, a new report shows.

The latest supervision report by the sector regulator, Saccos Societies Regulatory Authority (Sasra) also shows a 9.93 per cent jump in asset growth last year to Sh807.11 billion.

Sasra attributes the growth in assets to an increase in loans and credit facilities issued by Saccos over the review period.

During the period, gross loans increased from Sh555.05 billion in 2020 to Sh608.75 billion last year, while net loans and advances amounted to Sh573.68 billion.

The Deposit-Taking Sacco (DT-Sacco) segment controlled the largest proportion of both the deposits and the gross loans advanced by the Sacco sub-sector at 83.95 and 85.79 per cent respectively.

Sasra Chairman George Murathe noted that the growth was achieved amid external shocks such as Covid-19 and erratic weather conditions, which saw an unprecedented rise in food prices.

"It is encouraging to see that the Sacco subsector was able to withstand such shocks to record relatively impressive growth rates in the key performance parameters," said Mr Murathe.

Sasra Chief Executive Peter Njuguna said at the close of 2021, the authority had received 199 applications from Saccos seeking to undertake the specified non-deposit-taking (NWDT) business, out of which 185 applications were successful.