1.9 Million Sacco Members Stop Saving as Household Budgets Tighten

Nearly 1.9 million members of regulated savings and credit co-operative societies stopped actively using their accounts in 2025, highlighting growing pressure on household disposable income.

Data from the Sacco Societies Regulatory Authority (SASRA) shows dormant membership increased by 14.1 per cent to 1.90 million, from about 1.67 million a year earlier.

This means around 24 per cent of the 7.87 million members in the 357 Saccos supervised by SASRA did not transact on their accounts for the required period to remain active.

While total membership increased by 6.6 per cent, active membership grew more slowly, rising by 4.4 per cent to 5.97 million.

Cost of Living Squeezes Savings

The increase in dormant accounts comes as Kenyan households contend with higher statutory deductions, taxes and living costs.

Kenya Bankers Association estimates cited in the report indicate household purchasing power has fallen by between 10.7 per cent and 12 per cent over the past five years, despite increases in employment and wages.

For employed Kenyans, deductions including the housing levy, Social Health Insurance Fund contributions and higher National Social Security Fund payments have reduced the amount of income available for saving and spending.

The trend is significant for Saccos because members’ deposits remain their primary source of money for lending.

SASRA data shows members’ deposits and savings increased to KSh832.74 billion, while gross loans rose faster to KSh948.67 billion.

The gap between deposits and loans consequently widened to KSh115.93 billion, up from KSh95.68 billion a year earlier.

The regulator has urged Saccos to develop products aimed at reactivating dormant members and establish why some members are no longer contributing.

Despite the pressure, the sector continued to expand. Assets held by regulated Saccos increased from KSh1.08 trillion to KSh1.21 trillion, while loan repayment also improved.

Land and housing remained the largest recipients of Sacco credit at KSh157.2 billion, followed by education at KSh124.51 billion and agriculture at KSh110.74 billion.

The increase in dormant accounts nevertheless points to a growing challenge for Saccos: maintaining a large membership base is not enough if fewer members are actively saving.