Figure 15 distributive level of compliance with the

Figure 15: Distributive level of compliance with the CCD
Source: SASRA Database

The SACCO Supervision Annual Report, 2017
Page | 49
4.3. ASSETS AND ASSETS’ QUALITY
4.3.1. Composition of the total assets
The total assets portfolio of amounting to Kshs 442.27 Billion within the DT-SACCO sector during
the year 2017 was principally composed of loans which amounted to Kshs 320.49 Billion
representing 72.46% of the total assets portfolio. This was however a marginal decrease from the
73.42% of the total assets registered in 2016 which constituted the loan assets as show in Table 19 ;
but still underscores the fact that loans remain the core asset and thus business activity of SACCO
Societies.
Table 19: Composition of the total asset base of DT-SACCOs
2017 2016
2015
PARAMETER
Amount in
Kshs.
Millions
% to total
Asset
Amount in
Kshs.
Millions
% to total
Asset
Amount in
Kshs.
Millions
Cash and Cash Equivalent 39,622 8.96% 33,722 8.57% 29,330
Prepayments and Sundry Receivables 30,155 6.82% 19,373 4.92% 19,029
Financial Investments 20,860 4.72% 15,077 3.83% 20,585
Net Loan Portfolio 320,494 72.46% 288,921 73.42% 251,080
Property and Equipment and Other Assets 31,146 7.04% 36,405 9.25% 22,824
Total Assets 442,277 393,498 342,848
Source: SASRA Database
Noteworthy, are the recorded increase in the cash and cash equivalent ratio to total assets, which
improved to 8.96% of the total assets to reach Kshs 39.62 Billion from 8.57% of the total assets
accounting for Kshs 33.72 Billon in 2016. This constituted 8.57% of the total assets and thus a
reflection of the liquidity in the SACCO sector. Financial investments in the sector also increased to
reach Kshs 20.86 Billion in 2017 from Kshs 15 Billion recorded in 2016; reflecting a percentage
increase from 3.83% in 2016 to 4.72% in 2017.

The SACCO Supervision Annual Report, 2017
Page | 50
4.3.2. Loans and the quality of loan assets
Reg. 44 of the Regulations, 2010 provides a definitive criterion for the assessment and the
classification of credit and advances by DT-SACCOs. The assessment and classification is reported to
the Authority on a quarterly basis, as part of the off-site surveillance tools using the prescribed Risk
Classification of Assets Provisioning (Form 4) . Table 20 shows the aggregate assessment and
classification of the performance of loans and advances issued by SACCO Societies in 2017, as a
comparison to the previous years.
Table 20: Aggregate risk assessment and classification of loans
Prescribed
Minimum
2017 2016 2015
No of
Accounts
*
Gross
Loans (Ksh.
Millions)
% to Totals
Gross
Loans (Ksh.
Millions)
% to Totals
Gross
Loans (Ksh.
Millions)
Performing 1% 1,527,393 294,359 88.87% 263,505 89.19% 226,434
Watch (1-30 days) 5% 108,304 16,502 4.98% 18,525 5.59% 18,612
Substandard (31-180 days) 25% 77,869 9,964 3.01% 8,050 2.63% 6,813
Doubtful (181-360 days) 50% 48,839 4,918 1.48% 3,288 1.11% 2,804
Loss (Over 360 days) 100% 93,270 5,468 1.65% 4,236 1.48% 3,601
Grand Totals 1,855,675 331,212 297,604 258,264
NPL Amount (Millions) 21,000 14,567 13,218
Provision Amount (Millions) 14,640 10,788 9,901
Provisions/Gross Loan 4.28% 3.86% 3.83%
Portfolio at Risk
(NPL/Gross Loans) 6.14% 5.22% 5.12%
* Number of Accounts relates to 2017 only
Source: SASRA Database
As appears in Table 20 , over 88.87% of the total loan portfolio in the DT-SACCO sector was
performing in accordance with the contractual obligations, thereby reflecting a relatively healthy
aggregate loan book; even though this was a slight decline from the performing loan portfolio
recorded in 2016 which was at 89.19%. The slight decline has been reflected by the increase in the