RESILIENCE

Saccos perform well despite economic slowdown due to Covid-19

Saccos record a growth of 12.7 percent in total assets despite challenges due to Covid-19 pandemic

In Summary

• Total assets at the end of 2020 was Sh627.7 billion compared to Sh556.7 billion at the end of 2019, an increase of 12.7 percent.

• Gross loans were at Sh474.8 billion in December 2020, compared to Sh419.6 billion in 2019, a growth of 13.2 percent.

Cooperatives Alliance of Kenya chairman Daniel Marube.
Cooperatives Alliance of Kenya chairman Daniel Marube.
Image: FILE

Cooperative Sacco’s have recorded higher total assets in 2020 despite the Covid-19 pandemic challenges  

Daniel Marube, Cooperative Alliance of Kenya, chief executive officer said saccos have performed relatively well despite the economic slowdown last year.

He spoke during a press briefing at the CIC head office in Nairobi on how the Cooperatives have been impacted by Covid-19.

Marube said the total assets at the end of 2020 was Sh627.7 billion compared to Sh556.7 billion at the end of 2019. This is an increase of 12.7 percent.

According to statistics from Sacco Societies Regulatory Authority-SASRA, gross loans were at Sh474.8 billion in December 2020, compared to Sh419.6 billion in 2019. This is a growth of 13.2 percent.

“The Total deposits held by the deposit taking -DT SACCOs stood at Sh431.5 billion by close of 2020, a 13.4 per cent increase on the Sh380.4 billion recorded in 2020. Non-performing loans portfolio for deposit taking Saccos closed the year 2020 at Sh36.1 billion representing 8.4 percent of the total portfolio. This is a sharp rise from 6.15 per cent or Sh25.8 billion recorded in end of 2019,” the authority data showed.

The authority further indicated that restructured stood at Sh.7.7 billion in December 2020 from Sh2 billion in March 2020. Core capital increased to Sh97.74 billion from Sh79.20 billion, this is a growth of 23.41 percent.  

Marube said the Cooperative model has been tested for its resilience and sustainability, and today there in no doubt it is well thought.

“The 2020 statistics are a testament to the resilience and sustainability of the cooperative model. On positive note, the uptake and upgrade of ICT platforms has improved efficiency, and Saccos performed relatively well despite the economic slowdown. This affirms the sustainability and resilience of the Cooperative model,” said Marube.

He added that the International Cooperatives Day, locally known as Ushirika Day will be marked on July 3, 2021 under the theme, ‘Rebuilding Better Together’.

“Our strength is in numbers. With over 14 million Cooperators in Kenya, and operating on the principle of business with social responsibility, we have been able to demonstrate that the Cooperative model is resilient and sustainable as a driver of development,” said Marube.