Only 12 per cent of Kenya’s 175 deposit-taking savings and co-operative societies (DT-Saccos) can comfortably fund loans from members’ savings, the industry regulator has said, raising concern over costly lending through cash borrowed from other sources such as commercial banks.
The Sacco Societies Regulatory Authority (Sasra) said only 21 DT-Saccos met the statutory requirement for total loans to total deposits ratio of 70 per cent in 2016.
