SASRA Report Shows Kenyan Parents Borrowed KSh 96.3b To Pay School Fees

• The Sacco Supervision Annual Report, 2023, showed that 20.92% of all loans borrowed by SACCO members in 2023 went to fee payments and related expenses
• Loans issued for the education sector in 2023 recorded a slight decline from 21.98% of credit disbursements reported during a similar period in 2022
• During the period under review, regulated SACCO membership grew by 6.57%, reaching 6.84 million, up from 6.42 million in 2022

TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.

A new report by the Sacco Societies Regulatory Authority (SASRA) has revealed the heavy financial burden facing Kenyan parents.

What was the value of loans borrowed by parents?

The Sacco Supervision Annual Report, 2023, showed that 20.92% of all loans borrowed by SACCO members in 2023 went to fee payments and related expenses.

The report indicated that loans disbursed for school fees amounted to KSh 96.33 billion during the period under review.

"The education sector took the second highest chunk of the credit disbursed by regulated SACCOs amounting to KSh 96.33 billion representing 20.92% of all the credit disbursements, and mainly to pay school fees and associated expenses for members of SACCOs and their dependants," it stated.

However, the loans issued for the education sector in 2023 recorded a slight decline from 21.98% of credit disbursements reported during a similar period in 2022.

How many SACCOs are in Kenya?

According to SASRA, there were 176 licensed Deposit-Taking (DT) SACCOs and 181 Non-Withdrawable Deposit-Taking (NWDT) Saccos.

On the other hand, regulated SACCO membership grew by 6.57%, reaching 6.84 million, up from 6.42 million in 2022.

"In 2023, Kenyans showed increased confidence in SACCOs by saving a total of KSh 682.19 billion, reflecting a 9.95% growth from KSh 620.45 billion saved in the year 2022."

Which Kenyan SACCOs pay high dividends?

In May, SACCOs started paying dividends to members for the year ending December 2023.

Tower Sacco, which draws members from both the public and private sectors with a minimum monthly deposit of KSh 500, paid dividends of up to 20%.

Others, like Hazina and Stima Sacco, with a minimum monthly contribution of KSh 1,000, paid dividends at a rate of 17% and 15%, respectively.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.