Kenya’s SACCO sector has clarified that its Ksh1.2 trillion asset base should not be confused with cash sitting in bank accounts, saying nearly four-fifths of the funds have already been advanced to members as loans.

Speaking during an interview with a local television station on Tuesday, July 14, 2026, STIMA DT SACCO Chief Executive Officer Gamaliel Hassan said public debate around SACCO finances has overlooked how cooperative assets are structured, creating the impression that the sector is sitting on vast amounts of cash available for investment.

According to Hassan, the sector currently holds assets worth about Ksh1.2 trillion, but approximately Ksh950 billion has already been advanced to members through loans, leaving only about Ksh250 billion in reserves meant to support growth and strengthen the institutions.

“We are not sitting on a cash pile of Ksh1.2 trillion to be given out. Most of those resources have already been lent to members, while the reserves are meant to support expansion and capital growth,” Hassan said.

Loan book dominates SACCO assets

Hassan explained that lending remains the core business of SACCOs, with about 78 per cent of the sector’s asset base consisting of loans issued to members.

He added that roughly 73 per cent of the industry’s portfolio comprises member deposits, which are mobilised primarily to provide affordable credit rather than remain as idle cash.

“For us, having a loan portfolio of about 78 per cent means we are doing exactly what SACCOs were created to do collect members’ savings and lend them back to members at affordable rates,” he said.

Using STIMA DT SACCO as an example, Hassan noted that the institution’s Ksh75.3 billion asset base follows a similar structure to the wider industry, with loans accounting for the largest share of assets.

He further said the cooperative movement continues to expand, noting that between 10 million and 14 million Kenyans are currently SACCO members out of a population of about 55 million, leaving significant room for growth.

Govt also dismissed claims

Hassan’s clarification comes days after the government dismissed claims that it intends to use members’ SACCO savings to finance the National Infrastructure Fund.

Speaking during Ushirika Day celebrations, State Department for Co-operatives Principal Secretary Patrick Kilemi said SACCO deposits remain the property of members and are managed independently by elected officials.

“SACCO funds remain the property of the respective SACCOs and are managed exclusively by the elected officials. The government of Kenya has no access to, nor does it intend to utilise these funds,” Kilemi said.

The clarification followed public debate over reports suggesting that more than Ksh1 trillion held by SACCOs could be channelled into infrastructure financing. Government officials have maintained that while cooperatives may voluntarily invest in approved financial instruments, members’ deposits remain protected and under the control of individual SACCOs.