Sasra: Nearly 9 in 10 sacco members have savings below Sh50,000

Nearly nine out of every 10 Sacco members in Kenya have savings of less than Sh50,000, according to new figures from the Sacco Societies Regulatory Authority (Sasra), a finding that is now being used to support plans for a deposit protection scheme that would fully cover most members if a Sacco were to fail.

The regulator's latest data shows that about 89 per cent of Sacco members fall within the Sh50,000 savings bracket. Out of an estimated 15 million Sacco members across the country, about 13.5 million have deposits below that amount. Overall, around 13.8 million members have savings of Sh100,000 or less.

The figures further show that only a small share of Sacco members have managed to build deposits above Sh100,000, meaning roughly one in every 12 savers holds more than the six-figure mark in their accounts.

According to Sasra, regulated Saccos were managing 18.95 million deposit accounts worth a combined Sh832.8 billion as of December 2025.

Of these accounts, 16.88 million held less than Sh50,000. Together, they accounted for Sh45 billion, representing just 5.36 per cent of the total deposits held within the regulated Sacco sector.

The data also shows that 91.78 per cent of all deposit accounts in regulated Saccos contain balances of Sh100,000 or less. Only 8.22 per cent of accounts hold savings above that level.

The findings emerged during Sasra's submissions to the National Assembly Trade Committee as lawmakers consider proposed amendments to the Sacco Societies Act.

The proposed changes seek to establish stronger protection for members' deposits through a Deposit Guarantee Fund that would compensate savings of up to Sh100,000. Sasra says the proposed limit would be enough to fully protect the vast majority of Sacco members should a deposit-taking Sacco collapse.

“An assessment of deposit balance level of Sacco members indicates that majority of deposit accounts equivalent to 92 per cent operated by members holds account balances of Sh100,000 and below,”said Sasra in its submission.

The regulator said the findings show that a large number of deposit holders fall within the proposed compensation limit and would therefore be fully covered in the unlikely event of a failure.

Sasra's submission shows that while regulated Saccos held 18.95 million deposit accounts valued at Sh832.8 billion by the end of 2025, only about 1.56 million accounts had balances above Sh100,000. More than 17.4 million accounts remained below that threshold.

The authority noted that accounts with balances below Sh50,000 form the largest group within the sector, accounting for 89.03 per cent of all deposit accounts. Despite their numbers, these accounts hold only 5.36 per cent of total deposits, showing that millions of members maintain relatively modest savings.

At the opposite end, accounts holding more than Sh1 million represent just 0.81 per cent of all deposit accounts. However, they account for 38.38 per cent of all deposits in regulated Saccos, highlighting how a large portion of savings is concentrated among a small number of account holders.

Sasra says these savings patterns support the proposed compensation ceiling of Sh100,000 under the planned Deposit Guarantee Fund.

The regulator argues that global standards on deposit insurance recommend protecting the majority of depositors rather than focusing on the largest account balances.

It further noted that a World Bank-supported study conducted between 2018 and 2019 reached a similar conclusion, finding that a Sh100,000 guarantee would protect about 92 per cent of Sacco accounts. According to Sasra, the proposal is in line with international principles developed by the International Association of Deposit Insurers.

The proposed amendments are part of wider efforts to modernise Kenya's Sacco sector. Parliament is considering reforms aimed at introducing shared technology services, strengthening oversight of Saccos and operationalising the long-delayed Deposit Guarantee Fund.

Beyond protecting deposits, the Bill is also expected to help smaller Saccos address technology challenges that have affected their ability to compete effectively within the financial sector.