Why 60 SACCOs Control 77% of Industry Assets

Kenya had 355 regulated SACCOs in 2024, but the industry was far from evenly distributed. SASRA reported that 60 large-tier SACCOs controlled KES 829.41 billion, or 77.07% of total regulated SACCO assets.

How the gap developed

Large SACCOs often have older membership bases, payroll deduction systems, national reach and established loan products. Scale allows them to invest in technology, branches, staff and compliance. Those advantages can attract more members and reinforce growth.

What scale can improve

A large SACCO may spread operating costs across more members, offer several delivery channels and employ specialised risk staff. It may also have a more diversified membership base, which reduces dependence on one employer or locality.

What size does not guarantee

Large institutions can still make poor investments, carry a weak loan book or suffer governance failures. Their complexity can make problems harder to see. A small SACCO can be well run, liquid and close to its members. The balance sheet is one indicator, not the final verdict.

The regulatory challenge

SASRA can focus supervisory resources on large institutions because their failure would affect more members. At the same time, many small SACCOs struggle to generate enough income for technology, compliance and skilled staff. This is why mergers, shared services and wider common bonds keep appearing in industry discussions.

How a member should compare

Compare capital adequacy, liquidity, loan quality, audit opinion, governance and service. Then consider whether the membership model fits your needs. A large SACCO may offer convenience; a smaller one may offer faster personal service. Neither benefit should excuse weak financial ratios.

Bottom line

Concentration explains where most SACCO money sits. It does not tell you automatically where your money belongs.

Editorial note: Use the latest audited figures for an individual SACCO before making a decision.