How to check if your SACCO in Kenya is financially stable

The information below will cover some financial ratios using data from the top SACCOs based on the 2023 report, comparing them with these key standards.

Let’s start with some of the requirements to assess your SACCO’s financial stability by comparing its financial ratios with the following prescribed standards:

• Core Capital to Total Assets (CCA): Minimum 10%
• Core Capital to Total Deposits (CCD): Minimum 8%
• Institutional Capital to Total Assets (ICA): Minimum 8%
• External Borrowing to Total Assets: Maximum 25%

In explanation in details:

Core Capital to Total Assets (CCA)

This demonstrates how much of the SACCO’s assets are self-funded.

A minimum of 10% means the SACCO should use at least this amount of its own capital to support its total assets.

Core Capital to Total Deposits (CCD)

This measures how well the SACCO can cover its members’ deposits with its own capital. 

A minimum of 8% means the SACCO should have at least this percentage of its own funds to back the money members deposit.

Institutional Capital to Total Assets (ICA)

This shows how much institutional capital—such as reserves and retained earnings—funds the SACCO’s total assets.

A minimum of 8% is required to show that the SACCO can absorb losses.

External Borrowing to Total Assets

This shows the proportion of the SACCO’s assets that come from borrowing money from outside sources. 

A maximum of 25% means SACCO should not rely too heavily on debt to finance its assets.

Kenya SACCO financial ratios

Now, let’s compare the list of SACCOs with their financial ratios based on the 2023 data:

Mwalimu National Sacco

• Core Capital to Total Assets: 11%
• Core Capital to Total Deposits: 15.2%
• Institutional Capital to Total Assets: 7.7%
• External Borrowing to Total Assets: 4.7%
• Non-Performing Loans (NPL) Ratio: 4.6%

STIMA SACCO

• Core Capital to Total Assets: 17.5% 
• Core Capital to Total Deposits: 23.9% 
• Institutional Capital to Total Assets: 11.4% 
• External Borrowing to Total Assets: 0.8% 
• NPL Ratio: 3.7%

Kenya National Police DT

• Core Capital to Total Assets: 33% 
• Core Capital to Total Deposits: 56% 
• Institutional capital to total assets: 26% 
• external borrowing to total assets: 0.0% 
• NPL Ratio: 2.3%

Harambee SACCO

• Core Capital to Total Assets: 12.3% 
• Core capital to total deposits: 19.2% 
• Institutional capital to total assets: 6.2% 
• External Borrowing to Total Assets: 7.9% 
• NPL Ratio: 1.2%

Tower Sacco

• Core Capital to Total Assets: 15.8% 
• Core Capital to Total Deposits: 21.5% 
• Institutional Capital to Total Assets: 9.3% 
• External Borrowing to Total Assets: 0.40% 
• NPL Ratio:4.8%

Unaitas Sacco

• Core Capital to Total Assets: 33% 
• Core Capital to Total Deposits: 59.6% 
• Institutional Capital to Total Assets: 15% 
• External Borrowing to Total Assets: 5.7% 
• NPL ratio: 9%

Imarisha Sacco

• Core Capital to Total Assets: 17.6% 
• Core Capital to Total Deposits: 24% 
• Institutional capital to total assets: 8.2% 
• External borrowing to total assets: 2.2% 
• NPL ratio: 1.5%

United Nations DT Sacco

• Core Capital to Total Assets: 15.7% 
• Core Capital to Total Deposits: 20.4% 
• Institutional Capital to Total Assets: 8.7% 
• External Borrowing to Total Assets: 0.0% 
• NPL Ratio: 2.4%

Ukulima Sacco

• Core Capital to Total Assets: 14.3% 
• Core Capital to Total Deposits: 20% 
• Institutional Capital to Total Assets: 7.7% 
• External Borrowing to Total Assets: 2.2% 
• NPL Ratio: 5.9%

Hazina SACCO

• Core capital to total assets: 16.9%
• Core Capital to Total Deposits: 22.4%
• Institutional Capital to Total Assets: 13.5%
• External Borrowing to Total Assets: 0.0% NPL Ratio: 1%

Gusii Mwalimu 

• Core Capital to Total Assets: 19.9% 
• Core Capital to Total Deposits: 27.8% 
• Institutional Capital to Total Assets: 14.3% 
• External Borrowing to Total Assets: 0.00% 
• NPL Ratio: 9.7%

Invest and Grow

• Core Capital to Total Assets: 36.5%; 
• Core Capital to Total Deposits: 66.3%; 
• Institutional Capital to Total Assets: 27.5% 
• External Borrowing to Total Assets: 0.00% 
• NPL ratio: 3.4%

Mentor Sacco

• Core capital to total assets: 14.5% 
• Core Capital to Total Deposits: 19% 
• Institutional Capital to Total Assets: 8% 
• External Borrowing to Total Assets: 0.00% 
• NPL ratio: 5% 

Imarika SACCO

• Core Capital to Total Assets: 26% 
• Core Capital to Total Deposits: 41% 
• Institutional Capital to Total Assets: 19.7% 
• External Borrowing to Total Assets: 3.5% 
• NPL ratio: 7.7% 

Bandari DT SACCO

• Core Capital to Total Assets: 26.5% 
• Core Capital to Total Deposits: 40.9% 
• Institutional Capital to Total Assets: 22.5% 
• External Borrowing to Total Assets: 0.00% 
• NPL ratio: 9.4% 

Safaricom sacco

• Core capital to total assets: 15.7% 
• Core capital to total deposits: 20.3% 
• Institutional Capital to Total Assets: 7.8% 
• External Borrowing to Total Assets: 0.5% NPL Ratio: 3.3%

Winas SACCO

• Core Capital to Total Assets: 33.8%
• Core Capital to Total Deposits: 59%
• Institutional Capital to Total Assets: 30.9%
• External Borrowing to Total Assets: 0.0%
• Non-Performing Loans (NPL) Ratio: 2.9%

NDEGE CHAI Sacco

• Core Capital to Total Assets: 16.8%
• Core Capital to Total Deposits: 24.3%
• Institutional Capital to Total Assets: 10.7%
• External Borrowing to Total Assets: 4.7%
• Non-Performing Loans (NPL) Ratio: 2.5%