Market News

Saccos’ expansion drive tipped to boost financial inclusion

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Co-operative Development PS Ali Noor Ishmail. PHOTO | SALATON NJAU | NMG

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Summary

  • It is estimated that saccos have mobilised over Sh630 billion savings with an asset base of over Sh800 billion.
  • There are about 600 physical office delivery channels for financial services presented by deposit-taking saccos to the Kenyan population, according to the Sacco Societies Regulatory Authority (Sasra).
  • In addition to the physical offices, the saccos are progressively using ATM and mobile applications for provision of their services.

The Sacco sub-sector quest for visibility through branch and digital expansion can be a catalyst to boost financial inclusion in the country.

Co-operative development principal secretary Ali Noor Ismail said the sacco sub-sector has had continuous and steady growth over the years, which has encouraged diversification of products and increase in membership, asset base and deposits, and it could now complement efforts by the banking and telecommunications sectors in widening the reach of formal finance.

About 17.4 per cent of the over 40 million Kenyans are currently financially excluded.

“This is a very large number of people, and presents a great opportunity for saccos which have been big players in financial inclusion,” said Mr Ismail.

It is estimated that saccos have mobilised over Sh630 billion savings with an asset base of over Sh800 billion.

There are about 600 physical office delivery channels for financial services presented by deposit-taking saccos to the Kenyan population, according to the Sacco Societies Regulatory Authority (Sasra).

In addition to the physical offices, the saccos are progressively using ATM and mobile applications for provision of their services.

As at December 2016, Sasra data shows that only 65 saccos had not connected themselves to any form of ATM services. The majority of ATM services are, however, offered by the Co-operative Bank of Kenya.