In a significant shift in lending trends, new loans for land purchases and homeownership in Savings and Credit Cooperative Organizations (SACCOs) have overtaken those for agriculture and education. According to recent data from the Sacco Societies Regulatory Authority (Sasra), SACCOs disbursed Sh53.8 billion in new credit for land and housing in 2025, marking a notable increase compared to the Sh82.3 billion allocated to agriculture and education in the previous year.
This trend highlights a growing preference among SACCO members for long-term investments in real estate over traditional sectors like agriculture, which have historically been the backbone of cooperative lending. The shift may be attributed to rising urbanization rates and a burgeoning middle class in Kenya, which is increasingly seeking stable and appreciating assets. Additionally, the real estate sector has shown resilience, making it an attractive option for borrowers looking for security in their investments.
Looking ahead, this trend could have broader implications for both the Kenyan economy and the African financial landscape. As more individuals prioritize land and housing, we may see a ripple effect on the construction industry and related sectors. Investors and policymakers should monitor these developments closely, as they could signal a shift in economic priorities and investment strategies across the continent.