Mwalimu, Stima, Harambee and Kenya Police topped deposit-taking (DT) saccos with the highest customer deposits in 2017, new data by the regulator showed, boosting the overall performance of the sector despite the negative economic effects of a prolonged electioneering period.
Mwalimu National Sacco recorded Sh28.96 billion in customer deposits in 2017, up from Sh25.7 billion the previous year, data in the newly released annual report by the Sacco Societies Regulatory Authority (Sasra) showed.
Stima came second with Sh21.9 billion in customer deposits, climbing from 2016’s Sh19.01 billion. Harambee ranked third with Sh16.56 billion deposits in 2017 compared to Sh14.5 billion the previous year.
Kenya Police saw its deposits rising to Sh16 billion last year from Sh13.66 billion in 2016. Afya too had a good run recording Sh12.29 billion in deposits, up from Sh11.67 billion in 2016.
Overall, the total deposits increased by 12.01 per cent in 2017 to reach Sh305.3 billion, up from Sh272.58 billion in 2016.
The Sasra report further showed that the DT-saccos with between Sh1 billion and Sh5 billion in deposits increased to 53 in 2017 representing 40.63 per cent of the total deposits; from the 51 institutions representing 41.85 per cent recorded in 2016.
“Although the overall financial performance of DT-Saccos during the year 2017 remained on a relatively healthy upward growth trajectory, it is evident that there was an overall slackening of the rate of growth compared to the previous year,” Mr0, Sasra CEO, however, warned.
The number of DT-Saccos whose deposits base as at 2017 remained below the Sh 1 billion threshold decreased to 107 from the 113 institutions recorded in 2016, and largely informed by four saccos that crossed the Sh1 billion mark in deposits, as well as the two others which failed to file their audited Financial Statements for 2017.
“It, however, remains a concern that the 107 DT-saccos with deposits of below Sh 1 billion were only able to account for 10.95 per cent of the total deposit in the DT-sacco system, thereby depicting an uneven concentration of deposits within the system,” Sasra said.
The total assets portfolio of DT-Saccos grew to reach Sh442.27 billion from Sh393.29 billion in 2016 reflecting a 12.4 per cent growth rate. In the previous year, however, the total assets grew by 14.8 per cent representing almost 2.4 per cent drop in the growth rate. About 72.46 per cent of the total assets comprised net loans and advances.
The government-based and teachers-based DT-Saccos continue to control over 70 per cent of both the assets and deposits in the DT-sacco segment, but with a combined membership of just about 34 per cent of the total membership in the DT-sacco segment.
“This largely demonstrates the relative growth and success of the government-based and teachers-based DT-sacco when compared with the other clusters. This success is largely attributable to the direct check-off deductions from salaries methodology, both for non-withdrawable (BOSA) deposits as well as the recovery of loans and other credit facilities,” Sasra said.