Regulated Savings and Credit Cooperative Societies (SACCOs) disbursed Sh33.74 billion for land acquisition and housing during the first quarter of 2026, reinforcing their role as a key source of affordable property financing and home ownership in Kenya.
According to the SACCO Societies Regulatory Authority (SASRA) Quarterly Statistical and Soundness Report released by The Sacco Regulator on Monday, for the period ending March 2026, lending to the land and housing sector remained the largest credit segment, accounting for Sh33.74 billion of the Sh115.73 billion advanced across all economic sectors.
Of the total amount, Sh18.45 billion financed land purchases, while Sh15.29 billion supported housing, highlighting sustained demand for property financing through regulated SACCOs.
The report also showed continued growth across the regulated SACCO sector, with increases in total assets, deposits, gross loans, and income, reaffirming the sector's expanding contribution to financial inclusion and the country's housing agenda.
"Regulated SACCOs are key enablers in the facilitation of credit to their members, who ultimately finance various economic activities in the country," the report stated.
Education emerged as the second-largest beneficiary of SACCO lending, attracting Sh24.81 billion, followed by agriculture at Sh18.70 billion and trade at Sh15.74 billion. Other sectors financed included consumption and social services, finance and investments, manufacturing, and human health.
Beyond lending, the report indicated that regulated SACCOs continued recording strong financial growth during the quarter.
Total assets rose to Sh1.211 trillion in March 2026 from Sh1.079 trillion recorded in March 2025, representing a 12.28 percent year-on-year increase. Gross loans grew by 10.98 percent to Sh950.93 billion, while member deposits increased by 11.21 percent to Sh870.02 billion.
Total income reached Sh46.25 billion, reflecting an 18.38 percent growth from Sh39.07 billion recorded during the same period last year. Capital reserves also expanded by 14.98 percent to Sh247.53 billion.
"The Authority applies a Risk-Based Supervision approach to the regulated SACCOs in assessment of their stability and resilience to the challenges affecting the overall financial system," the report noted.
For Deposit-Taking SACCOs, core capital stood at Sh199.40 billion, while the liquidity ratio improved to 75.95 percent, significantly above the prescribed minimum of 15 percent.
The report, however, indicates that non-performing loans remained above the recommended threshold, with the ratio standing at 6.42 percent against the prescribed maximum of five percent.
SASRA says financial soundness indicators are regularly assessed using internationally recognised supervisory standards, including guidance from the International Monetary Fund, to evaluate capital adequacy, asset quality, earnings and liquidity.
The report concluded that regulated SACCOs continue playing a critical role in mobilising savings, expanding access to affordable credit and financing key sectors of the economy, with land and housing remaining the single largest area of investment during the first quarter of 2026.