The latest Quarter One (Q1) 2026 Statistical and Soundness Report released by the Sacco Societies Regulatory Authority (SASRA) outlines a sector that has graduated from simple village savings groups into a multi-billion-shilling economic engine.
While mainstream banking conversations often dominate the financial headlines, regulated SACCOs have quietly crossed a monumental threshold: total assets have officially surpassed the Ksh 1.21 Trillion mark. This represents an impressive 12.28% year-on-year growth from Ksh 1.08 Trillion in March 2025.
This performance highlights exactly how member-owned cooperatives are outstripping traditional economic metrics to fund the real, everyday economy.
The Big Picture: Q1 2026 Growth at a Glance
The numbers from SASRA paint a picture of immense resilience and deep financial inclusion across both Deposit-Taking (DT-SACCOs) and Non-Withdrawable Deposit-Taking (NWDT-SACCOs) segments:
| Financial Indicator | March 2025 (Ksh Billions) | March 2026 (Ksh Billions) | YoY Percentage Change |
| Total Assets | 1,078.88 | 1,211.40 | +12.28% |
| Gross Loans | 856.88 | 950.93 | +10.98% |
| Total Deposits | 782.30 | 870.02 | +11.21% |
| Total Income | 39.07 | 46.25 | +18.38% |
| Reserves | 215.29 | 247.53 | +14.98% |
Source: SASRA Q1 2026 Report
The Unspoken Angle: The Surge in Healthcare Capital
While typical economic analyses focus heavily on the land and real estate boom, the most surprising and telling metric in this report is the massive spike in credit advanced to Human Health and Related Services.
Lending to the healthcare sector grew by an astonishing 31.03% year-on-year, rising from Ksh 2.13 Billion in March 2025 to Ksh 2.79 Billion in March 2026.
Why this matters: As health insurance gaps persist and out-of-pocket medical expenses strain households, Kenyans are bypassing traditional commercial bank personal loans. Instead, they are turning to their SACCOs to fund medical emergencies, specialized treatment, and health infrastructure upgrades. This makes the cooperative movement an unofficial, critical safety net for national healthcare financing.
Where is the Money Flowing? Sectoral Lending Breakdown
A granular look at the Ksh 115.73 Billion in fresh credit disbursed during Q1 2026 shows precisely which pillars of the Kenyan economy are surviving on SACCO grease:
1. Land and Housing (Ksh 33.74 Billion)
Unsurprisingly, land ownership and housing take the lion’s share of funding, growing 18.01% YoY.
Land purchase commanded Ksh 18.45 Billion.
Housing construction and mortgages accounted for Ksh 15.29 Billion.
This reinforces the reality that affordable housing in Kenya is fundamentally built via cooperative equity rather than commercial bank mortgages.
2. Education (Ksh 24.81 Billion)
SACCOs remain the primary engine funding human capital development in Kenya. School fees and education-related services absorbed Ksh 24.81 Billion in Q1 2026 alone, marking a 27.12% YoY growth.
3. Agriculture (Ksh 18.70 Billion)
Feeding the nation requires capital, and SACCOs are delivering it straight to smallholders.
- Crop Farming accounted for Ksh 10.03 Billion.
- Animal Production received Ksh 6.57 Billion.
- This financing bypasses institutional red tape, putting liquidity directly into the hands of farmers right when the planting seasons demand it.
4. Trade and Micro-Enterprises (Ksh 15.74 Billion)
MSMEs are the backbone of the economy, and wholesale and retail trade ventures absorbed Ksh 11.39 Billion of this pool, while transport sector upgrades claimed Ksh 2.97 Billion.
Institutional Stability: Are Members’ Funds Safe?
Rapid growth is meaningless without financial stability. SASRA’s assessment indicates a highly resilient system under its Risk-Based Supervision framework.
The Liquidity Cushion: For Deposit-Taking SACCOs, the regulatory minimum liquidity ratio is 15%. In March 2026, DT-SACCOs recorded an overwhelming 75.95% liquidity ratio, proving that the institutions are highly liquid and robustly cushioned against sudden shocks.
The Capital Adequacy Strength: Core capital to total assets stands comfortably at 18.61% against a 10% statutory minimum, while Core capital to total deposits reached 26.12% against an 8% minimum threshold.
The Non-Performing Loans (NPL) Challenge: If there is a metric to watch closely, it is asset quality. The NPL ratio for DT-SACCOs stood at 6.42% in March 2026. While this is a noticeable improvement from the 7.17% spike seen in September 2025, it still hovers slightly above the regulator’s preferred target of less than 5%.
Final Thoughts: The Shift to Cooperative Capitalism
The Q1 2026 report cements a crucial structural shift: DT-SACCOs now control 88.4% of all regulated SACCO assets (Ksh 1.07 Trillion). They generated a staggering Ksh 42.14 Billion in total income this quarter alone, compared to the NWDT sector’s Ksh 4.11 Billion.
As commercial bank credit remains tightly squeezed by high interest rates and macro-financial pressures, the ordinary Kenyan citizen and the savvy business owner are voting with their deposits. By converting savings into localized investment capital, SACCOs have evolved from simple mutual-aid groups into the undisputed powerhouse of Kenya’s bottom-up economic landscape.
