Purchase of Plots, Houses biggest Business for Kenyan SACCOs

By Jackson OKOTH

SACCOs disbursed loan and credit facilities to members seeking to acquire plots or construct new houses, amounting to KSh 137.12 billion or 25.26% of all loans taken out in 2024. However, this amount has been on a decline from 33.24% in 2022 to 26.97% in 2023.

At the same time, SACCO loans towards the agricultural sectors of the economy has been on an upward trajectory, albeit with marginal increases from 13.76% in 2022 to 16.96% in 2023 and 20.05% in 2024 probably buoyed by the good weather patterns over the last two (2) years as well as government interventions through subsidies.

According to the latest SASRA Annual Supervision Report, the education sector of the economy however remains the second highest beneficiary of the loans from SACCOs for the third year running with a total sum of KSh 119.49 billion having been issued to fund education mainly in the form of school and college fees.

This was an increase from a proportion of 20.92% of all the total loans and credit advances issued by SACCOs to fund the education sector in 2023, and therefore underscores the critical role being played by SACCOs in the education sector.

SACCO loans to fund the trade sector amounted to KSh 63.14 billion representing 11.63% of the total loans and credit advances in 2024, which is a decline from a market share proportion of 12.64% which funded the trade sector in 2023.

The human health sector on the other hand received loans amounting to KSh 10.85 billion representing 2.00% of the total loans and credit advances in 2024, which was a decline from a market share proportion of 3.14% which funded the human health sector in 2023.

Under the Agricultural sector, the total loans to KSh 108.80 billion was distributed between crop farming KSh 69.04 billion; animal production KSh 29.89 billion; agricultural supporting services KSh 4.54 billion; agribusiness KSh 4.42 billion; and forestry and logging KSh 0.91 billion.

Under the land and housing sector the total loans and credit advances amounting to KSh 137.12 billion was disbursed to land acquisition or purchase of KSh 69.79 billion, while KSh 67.33 billion was disbursed towards housing purchase or construction.

The increase in the funding by Regulated SACCOs towards land and housing sectors is consistent with the findings of the Kenya National Bureau of Statistics (KNBS) Economic Survey, 2025, which reported that SACCOs made the highest financing arrangements towards the real estate market at 31.8%.