Report: Sacco staff struggle to market mortgages despite training

A new report co-authored by the Sacco regulator has revealed existing knowledge gaps among society’s staff on how mortgage products work and further recommended training to all relevant workers.

The report by Sacco Societies Regulatory Authority (Sasra) says in some instances, some staff are not familiar with Kenya Mortgage Refinance Company (KMRC) single-digit loans, which limits options for otherwise qualified customers.

The report, also co-authored by KMRC and Financial Sector Deepening (FSD) Kenya and compiled by AIS Capital Advisors, notes that the complexities around tax benefits are among the pieces of information Sacco staff are either unfamiliar with or totally unaware of.

Customers are therefore fed with conflicting information, which affects the quality of their choices and lengthens the decision-making process.

The report dated October 2025 and published January 2026 by FSD Kenya details that while this is the case, Saccos are still the preferred financial institutions for housing needs.

It notes that members value Saccos that offer clear product information, flexible and empathetic terms, income-aligned products with advisory support.

Loyalty rewards and consistent turnaround times are also the attributes members seek. The report states that accurate, complete, and accessible mortgage information is critical to avoiding delays, unexpected costs, and poor borrower planning.

“Yet many Sacco members have faced significant gaps in this area,” reads the report titled Leveraging Sacco Data and Research to Strengthen the Financing of the Affordable Housing Value Chain by the Sacco sector.

It adds that members frequently encountered misinformation on mortgage products, especially KMRC offerings, and lack of information on tax benefits, often being referred multiple times while receiving contradictory information on product details and eligibility at each point.

“In some cases, branch staff were unaware of the existence of KMRC mortgage products and provided incorrect qualification estimates, such as promising 105 per cent financing only for members to be approved for far less,” the report says.

It also states that critical information on closing costs was frequently omitted at the outset, leaving borrowers to cover unforeseen expenses mid-process, often at points where backing out was impractical.

Further, miscommunication on process duration, sometimes underestimating timelines by as many as five months, and undisclosed fees compounded borrower frustration.

“This lack of staff capacity and consistent messaging not only created inefficiencies but also eroded trust, highlighting the need for stronger internal capacity and streamlined processes to ensure consistent, accurate, and transparent communication from first contact to loan disbursement,” the report says.

Interest rates

These findings are amid the preference customers have for Saccos for their financial needs compared to banks. The report says borrowers perceive Saccos as offering better value and a more supportive lending experience than banks.

“Members defined a “better deal” not only as lower interest rates but also as access to higher financing proportions and longer repayment terms, resulting in qualification for larger loan amounts,” the report says. “Many linked this to the fact that, unlike banks, where borrowers are simply customers, Sacco borrowers are also shareholders.”

This dual role, the report says, means that when Saccos seek to maximise shareholder value, they are in effect seeking to maximise value for their own borrowers, creating a natural alignment of interests that banks lack.

This then gives Saccos a structural advantage they can leverage as they expand into products such as mortgages that have traditionally been dominated by banks. According to the report, from the customers polled, it was revealed that Saccos often provide more competitive mortgage terms than banks, even for similarly priced KMRC loans.

“Borrowers cited qualifying for higher loan-to-value ratios, larger loan amounts, and longer tenors from their Saccos, which created more compelling offers that banks could not match. This advantage was particularly valued by members seeking to maximise financing while maintaining affordability,” the report explains.

Additionally, Saccos adopt a more flexible and human-centred approach to loan restructuring during temporary defaults.

“Borrowers reported that Saccos were more willing than banks to explore restructuring options and accommodate short-term repayment challenges. This responsiveness fostered greater trust and strengthened long-term borrower relationships, reinforcing member loyalty,” the report says.

Credit teams

The report calls for Saccos to enhance staff capacity through continuous, structured, role-specific training on mortgage products and processes.

“All client-facing staff, not just specialist credit teams, should be equipped to provide accurate, consistent information from the outset,” the report says.

It insists that Saccos should ensure KMRC training knowledge cascades beyond trained Sacco staff, with tailored content curated for customer care, sales teams, relationship managers, and mortgage specialists to address their respective touchpoints with a borrower in the loan journey.

More so, streamlining internal lending processes can improve pre-qualification accuracy and borrower guidance offered by Saccos. It states that Saccos should standardise referral protocols so that customer care and sales staff can provide key information before passing clients to relationship managers, who in turn coordinate with mortgage specialists.

“Introducing dedicated KMRC product champions can help maintain clarity, while close collaboration between branches, relationship managers, and credit teams will ensure borrowers receive correct, complete, and consistent details on eligibility, costs, and timelines throughout the process,” the report says.

According to the Sacco Supervision Annual Report 2024 (the latest from the regulator) published in September 2025, land and housing hold the largest proportion of borrowers.

“From the foregoing analysis, the highest proportion of loans and credit advances issued by regulated saccos in 2024 were however, earmarked towards land and housing sectors of the economy, with the sum of Sh137.12 billion representing 25.26 per cent of all the loans and credit advances being disbursed during the year,” reads the Sasra report.

On the other hand, State-backed KMRC has onboarded several Saccos whose members stand to benefit from single-digit mortgages through onward lending.

They are: Kenya National Police Deposit-Taking Sacco, Stima Sacco, Harambee Sacco, Imarisha Sacco, Unaitas Sacco, Qona Sacco, Mwalimu National Sacco, Bingwa Sacco, Tower Sacco, Imarika Sacco, and Apstar Sacco.