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Thursday, September 24, 2020

How Kenyans spend their Sacco loans

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Sacco Loans in Kenya: A new report has come out to show how Kenyans spebd Sacco loans.

According to the report most Kenyans who take Sacco loans usually spend them on land or building houses.

The report by Sacco Societies Regulatory Authority (Sasra) also shows that 36 per cent of total outstanding credit by December 2016 was used in the real estate sector.

“Finances to this sector amounting to Sh. 110 billion financed either a purchase of parcels of land or constructions with only a paltry being used for land acquisition services such as valuation,” says the report.

The repory also shows that trade is the second most popular portfolio for credit financing for the five year period ending December 2016. It received Sh. 67 billion of the total loans borrowed, or 20.5 per cent.

Out of the amount, Sh. 63 billion was channeled to wholesale and retail businesses while Sh. 4 billion went to financing foreign trade and transport businesses.

Consumption needs and social activities accounted for Sh. 47 billion or 14.5 per cent of loans taken during the period.

Education loans stood at 12 per cent of the total credit financing at Sh. 39 billion, while agriculture received 6.6 per cent or Sh. 21 Billion of the total credit financing for the five years under study, indicating the dwindling allure of agriculture

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