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

Figure 15 distributive level of compliance with the

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