The savings and credit co-operatives (sacco) sector defied the economic challenges resulting from Covid-19 last year to record a 14 percent growth.
Data from Sacco Societies Regulatory Authority shows the sector’s assets at the end of last year stood at Sh677.7 billion, up from Sh556.7 billion a year earlier.
Gross loans stood at Sh474.8 billion compared to Sh419.6 billion in 2019, a growth of 13.2 percent.
The savings and credit co-operatives (sacco) sector defied the economic challenges resulting from Covid-19 last year to record a 14 percent growth in total assets when compared with 2019.
Data from Sacco Societies Regulatory Authority shows the sector’s assets at the end of last year stood at Sh677.7 billion, up from Sh556.7 billion a year earlier. Gross loans stood at Sh474.8 billion compared to Sh419.6 billion in 2019, a growth of 13.2 percent.
Total deposits held by the deposit-taking saccos stood at Sh431.545 billion last year, a 13.4 percent improvement on the Sh380 billion recorded the previous year.
Speaking ahead of the International Day for Cooperatives to be marked tomorrow, Cooperative Alliance of Kenya chief executive Daniel Marube said the growth reflects the resilience of saccos despite a difficult year that saw economic activities crippled by Covid-19.
“Despite the shocks experienced in individual and business incomes as a result of job losses and disruptions of value chains brought about by the presence of the Covid-19 pandemic, I must say that we are impressed with this performance,” he said.
Mr Marube said the difficulties brought about by the pandemic has also seen individuals eat into their savings as they seek to meet immediate financial obligations.
“Some saccos have in the period introduced new products to meet the immediate needs of their members, and on the flip side, the members are now more acutely aware that they should keep increasing their shares and savings to accrue more benefits as access of funds from other institutions becomes increasingly difficult,” he said.
In agriculture centred cooperatives, Mr Marube said the Covid-19 had negligible effect, and the government-led reforms in the tea, coffee and sugar sectors are expected to increase disposable income for farmers, which will boost savings.
“The reforms being undertaken in these agriculture sectors are consistent with the principles of co-operative movement that advocates for poverty alleviation, equity and shared prosperity,” he said.
The International Day for Cooperatives will be held virtually due to Covid-19 curbs.
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