DT-SACCOs sub-sector recorded an increase in the balance sheet size by 12.75% to reach KSh 627.68 Billion in 2020 from KSh 556.71 Billion recorded in 2019.
This is despite the impacts of COVID19 on the national economy, says the latest SACCO Societies Regulatory Authority (SASRA) Supervision Report.
DT-Saccos Deposits, Gross Loans, Net Loans and Advances
Total deposits grew by 13.41% to reach KSh 431.46 Billion in 2020 from KSh 380.44 Billion, representing an increase of 11.27% over the same period in 2019.
“These deposits formed the bedrock of sources of funding of the assets and shows that notwithstanding the impacts associated with the COVID-19 pandemic, DT-SACCOs were still able to moblise deposits at a near similar rate as the growth in their assets’ portfolios,” said Peter Njuguna, SASRA Acting Chief Executive Officer.
Deposit-Taking SACCOs also reported an increase in the gross loans to KSh 474.77 Billion representing a growth rate of 13.16% in 2020.
Net loans and advances increased by 12.60% to reach KSh 450.58 Billion in 2020, compared to an increase of 11.46%, amounting to KSh 400.16 Billion in 2019.
The 175-DT-SACCOs are generally clustered into five (5) main catchment areas of fields of membership from where they draw their membership.
Whereas the 49-Farmers based Deposit-Taking SACCOs controlled the most significant chunk of membership at over 41%, the same is not valid concerning their market share for total assets and total deposits, which was reported as a paltry 10.20% and 9.87%, respectively, in 2020.
Despite having the highest number of memberships, the 49-Farmers based DT-SACCOs accounted for only 10.20% and 9.87% of the total assets and total deposits, respectively.
Like in previous years, the 37-Government-based DT-SACCOs and the 43-Teachers based DT-SACCOs continued to control the largest market share of the total assets and total deposits’ portfolios within the DT-SACCO system.
“Based on the CAEL financial measurements, the DT-SACCO system reported increased capitalization during the year 2020 bolstered by the high overall retention by DT-SACCOs in the wake of uncertainties associated with the after-effects of COVID-19 pandemic on the national economy,” said Njuguna.
The core capital in absolute terms increased to KSh 97.74 Billion in 2020 from KSh 79.20 Billion reflecting an impressive 23.41% year to year change.
“Core capital increased by 23.41% to reach KSh 97.74 Billion, mainly due to high retention as a precaution to uncertainties associated with the impact of COVID-19 pandemic,” said Njuguna.
The total income among the 175-DT-SACCOs also grew to reach KSh 86.04 Billion in 2020 from KSh 79.88 Billion recorded in 2019, representing a 7.71% increase.
The total income was generally generated from the loans, which accounted for 85.77% of the total income reported.
“It is also important to observe that 35.58% of the total income amounting to KSh 30.61 Billion was expensed as interest on deposits and paid back to members, thereby underscoring the comparative advantage of DT-SACCOs as alternative savings’ financial institutions,” said Njuguna.
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