SACCO lending surges to Sh131.8 billion as demand for land, school fees, farm credit rises
Land purchases attracted Sh17.37 billion while housing loans reached Sh15.33 billion, underscoring SACCOs’ critical role in helping members acquire land and homes despite challenges in the real estate sector.
Savings and Credit Cooperatives (SACCOs) recorded strong lending activity in the three months ending September 2025, with members turning to cooperative societies for credit to fund land purchases, education, and agricultural projects.
Latest data from the SACCO Societies Regulatory Authority (SASRA) shows that loans in these sectors comprised more than 65 per cent of all disbursements during the third quarter, pushing total lending to Sh131.84 billion, up from Sh113.79 billion in June.
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The increase highlights growing confidence in SACCOs as a major source of financing across households and businesses.
Property-related lending remained the largest share of SACCO credit, totalling Sh32.70 billion, up from Sh29.10 billion in the previous quarter.
Land purchases attracted Sh17.37 billion while housing loans reached Sh15.33 billion, underscoring SACCOs’ critical role in helping members acquire land and homes despite challenges in the real estate sector.
“SACCOs are key enablers in the facilitation of credit to their members, who ultimately finance various economic activities in the Country,” the report says.
Education financing saw a notable rise, making it the second-largest loan category with Sh31.71 billion disbursed.
This marked a jump from Sh21.99 billion in June as families relied on SACCOs to pay school and university fees amid rising education costs.
SASRA notes that education loans now account for 24.05 per cent of total SACCO credit, almost matching the share of land and housing, reflecting the sector’s importance for families during fee payment cycles.
Agricultural loans, which are vital for rural members, increased slightly to Sh21.94 billion from Sh20.90 billion in the previous quarter.
While its proportion of total lending dipped to 16.64 per cent, SACCOs continued to be a lifeline for farmers seeking capital for crop farming, livestock, inputs, and agro-business ventures.
Borrowing for animal production grew sharply to Sh9.99 billion, more than doubling the Sh4.44 billion in March, as members invested heavily in dairy, poultry, and other livestock projects.
Loans for crop farming fell to Sh9.73 billion, affected by erratic weather and higher costs for inputs.
Beyond the top three sectors, SACCOs also supported trade, consumption, and finance-related activities. Lending for trade rose to Sh16.79 billion, driven by wholesale and retail businesses seeking working capital.
Loans for consumption dropped slightly to Sh12.52 billion, while finance and investment-related credit rebounded to Sh7.94 billion from Sh5.87 billion in June, showing increased confidence in SACCOs as a source of funds for diverse economic activities.
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