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Mortgage loans disbursed by Kenyan saccos fell 26.75% to KSh7.47 billion in 2025, from KSh10.2 billion in 2024, even though land and housing remained the saccos’ largest lending category, according to the Sacco Societies Regulatory Authority’s (SASRA) Sacco Supervision Annual Report 2025, The Standard reported on October 29, 2026.
Sacco mortgages in Kenya: the numbers
| Measure | 2024 | 2025 |
|---|---|---|
| Mortgage loans disbursed | KSh10.2bn | KSh7.47bn (-26.75%) |
| Land and housing lending (all loan types) | – | KSh157.2bn (26.35% of disbursements) |
Why sacco mortgages are falling
SASRA says mortgages are still a relatively new product for saccos. Members who want to buy land or build prefer flexible development loans, which are usually backed by their deposits and guarantors, can be taken in stages, and do not require a title to be charged. Formal mortgages need valuations, legal work and long tenors, which many saccos are not yet set up to handle. Long-term funding is also a constraint, since sacco deposits can be withdrawn by members who leave.
Why it matters
Saccos are big: regulated saccos held KSh1.21 trillion in assets in 2025; see our report on sacco assets hitting KSh1.21trn. Many Kenyans already use sacco loans to buy plots and build homes in phases. If more of that lending moved to proper mortgages, borrowers could get longer repayment periods and lower monthly instalments.
The Kenya Mortgage Refinance Company (KMRC) offers saccos long-term funds to back fixed, single-digit-rate home loans. Our guide explains how KMRC mortgages work.
Development loan or mortgage: which suits you?
| Feature | Sacco development loan | Mortgage |
|---|---|---|
| Security | Deposits and guarantors | The property itself |
| Typical term | Up to about 5–6 years | Up to 20–25 years |
| Amount | Usually a multiple of your deposits | Based on income and property value |
| Best for | Buying a plot, building in phases | Buying a finished home |
For lender options and requirements, read how to get a mortgage in Kenya.
FAQ
How much did saccos lend as mortgages in 2025?
KSh7.47 billion, down 26.75% from KSh10.2 billion in 2024.
Why do sacco members prefer development loans?
They are flexible, backed by deposits and guarantors, and can fund land purchase and phased building.
Updated October 31, 2026.
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