Sh60bn loan-deposit gap piles pressure on saccos

DNSACCOCentral1504D (1)

CEO of the SACCO Societies Regulatory Authority (SASRA) Peter Njuguna. FILE PHOTO | WILFRED NYANGARESI | NMG  

Sacco borrowings are surging at a faster rate than that of deposits, leaving the savings and credit unions facing a negative wealth position and exposed to expensive debt to fund member lending.

The gap between the loans and deposits grew by a larger margin to Sh60 billion in 2022, indicating that members sought money from the cooperatives via loans and withdrawals at a faster pace than they made new savings in a period of economic challenges like high inflation.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.