SACCO Societies Regulatory Authority (SASRA) has today released the SACCO Supervision Annual Report, 2020 which highlights the operations and performance of SACCO Societies during the year ended, December 2020.
The Report highlights both the aggregated and individual financial performance of the DT-SACCO segment in 2020, as well as the complementary role of DT-SACCOs in the provision of affordable financial products and services to Kenyans.
According to the sectoral report, the Authority is currently regulating a total of 175 Deposit-Taking (DT) SACCOs which serves a membership of slightly over 5.4 million Kenyans. The DT Saccos recorded an aggregate asset base of Kshs 627.68 billion representing a yearly increase of 12.5% and total deposits of Kshs 431.46 billion representing a yearly increase of 13.41%. The Report unpacks the critical role played by DT-SACCOs in deepening financial inclusion in the country. With a reported loan portfolio of Kshs 474.77 billion representing a yearly increase of 13.16%.
While releasing the Report and commenting on the performance of the DT SACCOs, SASRA Acting Chief Executive Officer Peter Njuguna said: “The Report is a testament to the fact that DT-SACCOs continues to be a critical source of access to credit facilities by many Kenyans, particularly the household economies as well as the SME’s. Indeed, statistics in the Report reveals that in the aggregate, DT-SACCOs were able to defy the disruptions caused in the national economy by the impact of COVID-19 pandemic and the associated restrictions.”
Despite the stellar performance of the DT-SACCOs, during a very tough economic year, the Report highlights some of the challenges that continue to hamper the growth and development of DT-SACCOs. The perennial delays in remittances of deductions top the list, with a sum of Kshs 5.04 billion being owed to the sector during the year 2020, which is an increase from the sum of Kshs 3.87 billion recorded during the year 2019; thereby calling for a re-think at the policy, legal and administrative structures aimed at addressing the problem.
Low usage of ICT and other technologically enabled mobile devices in the provision of services; as well as short-term illiquidity needs resulting in delays by some DT-SACCOs to make prompt refunds of members’ deposits are some of the teething problems facing the subsector.
In the meantime, the Authority shall soon be publishing the list of non-withdrawable deposit-taking SACCOs which have complied with the Act and the Regulations, 2020 whose transition period lapsed on 30th June 2021. So far, a total of 188 applications have been received, out of which the Authority has issued 50 SACCOs with authorization certificates. The remaining applications are under review and will be concluded on or before 15th September 2021.