Sharp Daily
No Result
View All Result
Monday, January 26, 2026
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

SACCO’s at the heart of rural financial inclusion in Kenya

Brian Otieno by Brian Otieno
May 22, 2025
in Investments
Reading Time: 2 mins read

In much of rural Kenya where banking services remain out of reach for many due to challenges like long distances to banks and strict loan requirements keeping many excluded financially. But for many, SACCOs -Savings and Credit Co-operative Societies are filling that gap in a way banks never could.

From farmers in Nyeri to boda boda riders in Kakamega to fishermen in Kisumu, SACCOs are making it easier for ordinary Kenyans to save, borrow, and to invest. Run by members themselves, they pool savings and offer loans at affordable rates, with minimal paperwork and more flexible terms than commercial banks as SACCOs are built on trust and community making them far more accessible for rural populations, many of whom depend on seasonal farming or informal work, allowing them to respond directly to the needs of their members.

 Kenya’s 177.0 licensed SACCOs manage over KES 500.0 bn in asset base and savings accounting for 35.0% of national savings as per the regulator report. Notably, majority of the SACCO’s are concentrated in rural counties, where they provide a wide range of services including small business loans, financial literacy programs and  savings accounts thereby helping to build a savings culture in areas where cash is often spent immediately out of necessity. By encouraging savings SACCOs contribute to long-term financial stability at the household level.

Despite their success, SACCOs face serious challenges. Many rural SACCOs struggle to adopt digital technology. While urban SACCOs have embraced mobile apps services, their rural counterparts often rely on outdated systems. Poor internet connectivity, high costs of technology, and limited digital literacy among members all contribute to a widening digital gap, affecting efficiency and limits the ability of SACCOs to scale

RELATEDPOSTS

Thirty-five SACCOs face sanctions as anti-money laundering rules tighten

January 15, 2026

Airtel plans digital overdraft to challenge Safaricom’s fuliza

January 14, 2026

There are also operational challenges, such as rising compliance costs and the risk of loan defaults especially in agriculture, where incomes are unpredictable. These issues make it difficult for smaller SACCOs to compete or grow without external support.

Even with these hurdles, SACCOs remain central to Kenya’s efforts toward inclusive growth. They not only provide access to money but also build financial skills, promote entrepreneurship, and support community resilience. As Kenya looks to meet its Vision 2030 goals, investing in SACCO’s will be key to ensuring rural communities are not left behind

Previous Post

Kenya’s insurance sector in 2025

Next Post

Lessons from Equity Bank’s M-Pesa scandal

Brian Otieno

Brian Otieno

Related Posts

Analysis

NSE bond trades hit record Sh2.7 trillion on investor surge

January 23, 2026
Investments

Strategic ownership shifts are reshaping the NSE Equity landscape

January 22, 2026
The up arrow shows the inflation rate. Interest rates increase, home loan, mortgage, house tax. investment and asset management concept. percentage for increasing interest rates with stacks coins
Investments

Understanding Private Equity (P.E) in Kenya

January 21, 2026
Analysis

Kenyan investors allocated 60 percent of KPC shares in landmark IPO

January 20, 2026
Analysis

Kenyan investors can buy up to 60% of 11.8 billion KPC shares at Sh9 each

January 20, 2026
Investments

Mobile Money Meets the Stock Market

January 16, 2026

LATEST STORIES

Housing Finance tops banking sector in lending margins

January 26, 2026

Why the Two-tiered Structure in NSSF is Important

January 23, 2026

Public enterprises in the capital market

January 23, 2026

Why Bank Lending Rates Remain Sticky Despite CBK Policy Signals

January 23, 2026

The Rising Foreign Ownership of Kenyan Banks: Opportunity, Risk, or Market Maturity?

January 23, 2026

Fuel price decline as a hidden stimulus

January 23, 2026

Beyond Representation: Are Kenya’s Foreign Missions Engines of Economic Growth?

January 23, 2026

Beyond Compliance: Why Money Laundering Is a Development Problem

January 23, 2026
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024