3
The SACCO subsector has rebounded robustly, with assets growing by 14% to Ksh1.3 trillion in 2023, according to SASRA. Membership crossed 22 million, reflecting renewed public trust after post-pandemic recovery. Leading SACCOs like Stima and Mwalimu reported loan book growth exceeding 20%, fueled by affordable housing and education financing. Digital adoption has accelerated, with 78% of SACCOs now offering mobile banking. However, SASRA warns of rising non-performing loans (8.2%) and urges stricter credit appraisal. The regulator is also pushing for consolidation among micro-SACCOs to enhance resilience. With banks retreating from rural lending, SACCOs are filling the gap, especially in agriculture and microenterprise finance.