The sacco sub-sector defied the economic challenges resulting from Covid-19 last year to record a 14 per cent growth in assets during quarter three compared with the same period in 2019.
Sacco Societies Regulatory Authority (Sasra) chairman John Munuve said the sector’s assets in the review period stood at Sh597 billion compared with Sh525 billion in corresponding period of 2019.
Gross loans stood at Sh448.59 billion at the end of September 2020, compared to Sh400 billion during a similar period in 2019, a growth of 12.2 per cent.
“Despite the shocks experienced in individual and business incomes as a result of job losses and disruptions of value chains brought about by the advent of the Covid-19 pandemic, we are glad to report that the sacco sub-sector performed relatively well, with an upturn in all the key performance indicators, based on data collected,” said Mr Munuve.
Total deposits held by the deposit taking saccos stood at Sh412.45 billion in the quarter, a 12 per cent improvement on the Sh368 billion recorded at the same time the previous year.
Mr Munuve said the unaudited returns indicate that the non-performing loans portfolio for deposit taking saccos closed the year at Sh30.44 billion, out of a total loan book of Sh469.02 billion, representing 6.49 per cent of the total collection, which is against Sh25.79 billion, out of gross loans of Sh419.55 billion as at December, 2019.
He said Sasra is working towards the establishment of Deposit Guarantee Fund (DGF). The relevant legal amendments have been drafted and are currently being processed by the state department of cooperatives for onward submission to the National Treasury,and ultimately incorporation into the 2021 Budget Policy Statement and the accompanying Finance Bill.
“Already, guidelines have been disseminated to saccos to help them in nominating trustees for appointment by the CS to the fund’s board of trustees, he said.
This board, which will comprise four trustees from the licensed Saccos, will be responsible for the management of the Fund. Once the nominations are made, the board of trustees will be appointed by the CS, operationalising the DGF.