Financial Stability Report 2015 - Sacco Industry developments highlights
The Sacco industry total assets grew by 12.17 per cent in 2015 with loans being the single largest balance sheet asset at 73.5 per cent. The Sacco Society Regulatory Authority (SASRA) renewed licenses for 181 deposit taking Sacco societies to operate in 2015.
Thedeposit taking Sacco societies continue to grow above 12 per cent in all the key performance indicators and account for 75 per cent of the total assets and deposits in the Sacco sub-sector. These societies net assets exceed KSh.5 billion, which account for 54 per cent of net assets and deposits.
The increasing demands for prudential regulatory compliance coupled with the fact that majority of the small Sacco societies are financially and technically constrained, remain a major challenge for this category of deposit taking Saccos. The growth momentum for the large and medium sized deposit taking Saccos is expected to exert competitive pressure on the small Saccos, which may opt out of the deposit taking Sacco business to concentrate in the non-deposit taking Sacco business or encourage mergers.
(Please note that this article has been extracted from the Financial Stability Report, 2015 which is available on this link.)