Many Kenyans belong to Savings and Credit Cooperative Societies (Saccos), but few understand what the letters "DT" mean when they appear in a Sacco's name.
According to Stima Sacco Chief Executive Officer Gamaliel Hassan, the designation is more than just a label, it shows that a Sacco is licensed to offer banking-like services under the regulation of the Sacco Societies Regulatory Authority (SASRA).
Speaking on the structure of Kenya's Sacco sector during an interview on Radio Generation on Thursday, Hassan explained that Saccos fall into two broad categories: those regulated by SASRA and those that are not.
The distinction determines the range of financial services members can access.
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Hassan said he served on a committee of experts that reviewed reforms in the Sacco sector and examined data from the Kenya National Bureau of Statistics to better understand the industry's structure.
"I've happened to sit in the committee of experts that was going through the reforms in the Sacco sector, and during our analysis, we looked at some data that we received from the Kenya National Bureau of Statistics," he said.
The review showed that Kenya had about 13,000 Saccos, with the majority operating outside SASRA's regulatory framework. These institutions fall under the Commissioner for Cooperatives.
"At that time, there were about 13,000 plus Saccos in Kenya. A big chunk of them were what you call unlicensed, meaning that they do not come under the ambit of our regulator," Hassan said.
He likened SASRA's role in the Sacco industry to that of the Central Bank of Kenya in the banking sector.
"Our regulator is called SASRA. That's the Sacco Societies Regulatory Authority. Think CBK, then think SASRA, then think Saccos," he explained.
According to Hassan, only about 355 Saccos are currently licensed and regulated by SASRA as deposit-taking institutions.
These Saccos meet regulatory requirements that allow them to provide a wider range of financial services to members.
"We have about 355 Saccos or so now, the DT bit, that are licensed and regulated by SASRA. Again, as CBK regulates the banking sector, we have the 355 also that are regulated through SASRA," he said.
He explained that the regulated Saccos are divided into two groups: Deposit-Taking (DT) Saccos and Non-Withdrawable Deposit-Taking (NWDT) Saccos, with the numbers almost evenly split.
"Out of the 355, the split is almost equal, half-half. So you will see there is DT Sacco, and then there is NWDT. These are non-withdrawable deposit-taking Saccos," Hassan said.
The main difference between the two lies in the services they offer. A DT Sacco operates Front Office Service Activities (FOSA), enabling members to access services that resemble those available in commercial banks.
"There are Saccos that offer banking-like services, so they have branches. You can be able to walk in, get a cheque book, get an ATM, do your EFTs, your RTGS, similar to any other services that you'd walk into a bank and do. That's a deposit-taking Sacco," Hassan said.
Hassan said members who join a DT Sacco can access nearly all the financial products and services offered by commercial banks, making them a convenient option for everyday banking needs.
"Absolutely, I think the moment you already get into a DT Sacco, there is—I mean, with all honesty—you don't really need to operate any other account elsewhere because everything that you desire, you're going to get it," he said.
He said DT Saccos offer a wide range of services, including savings and current accounts, fixed deposit accounts, children's accounts, mobile banking platforms, mobile applications, Visa-branded ATM cards, Electronic Funds Transfer (EFT) and Real Time Gross Settlement (RTGS) services.
Hassan, however, noted that DT Saccos differ from commercial banks in only two areas.
"There are only two exemptions that DT Saccos do not do that probably the banks do. One is that we do not have direct access to the national payment system. And number two, we do not trade in foreign exchange. That's it," he said.
Apart from those two limitations, Hassan said DT Saccos are equipped to meet virtually all the day-to-day financial needs of their members.
"If you want a mobile platform, it is there. If you want an app, it is there. If you want an ATM Visa branded card, you're going to get it. You can use it anywhere in the world. If you want to do an RTGS, an EFT. If you want a fixed deposit account. If you want a savings account. You want a current account. If you want your children's account, think about any other things that you would require," he said.
By contrast, NWDT Saccos do not operate banking halls or front-office facilities. Their services are limited and do not include everyday banking transactions.
"They do not do that bit of having a front office or having a banking hall. They are called non-withdrawable deposit-taking Saccos," he said.
In conclusion, the CEO said the easiest way for members to identify a Sacco that offers banking services is to check whether it carries the DT designation.
"So any Sacco you see with the name DT, it means it is a deposit-taking Sacco, and indeed it does offer front office services, or what we call FOSA banking," he said,
Stima DT Sacco posted Sh10.8 billion in revenue for the year ended December 31, 2025, as its total assets rose to Sh75.27 billion from Sh66.44 billion recorded in 2024.