The ratings on Kenya Police Sacco Society Limited reflect a limited competitive position, strong capitalisation, solid risk position, stable funding structure and appropriate liquidity. Kenya Police Sacco is a deposit-taking co-operative society. The Sacco operates exclusively in Kenya, and its common bond allows membership to serving and retired Kenyan police employees, civil service employees, corporate entity employees, the business community, and the direct family of members.
The outlook is positive. This reflects our expectation of the Sacco’s cost of risk continuing to outperform the sector and some normalisation of earnings over the next 12 months. We expect the capital position to remain strong, supported by a GCR leverage ratio above 20%, driven mainly by good earnings and a conservative dividend policy, relative to peers.