ABSTRACT:- This study aimed to determine the effect of deposit levels on the financial stability of deposit-taking SACCOs in Kenya. The study employed a descriptive research design and relied on secondary data collected from the audited financial reports of 176 licensed deposit-taking SACCOs from 2018 to 2022.. Data analysis involved descriptive statistics, correlation analysis, and multiple regression. The findings revealed that deposit levels, capital adequacy, and firm size have significant positive effects on financial stability, with capital adequacy being the strongest predictor. Deposit levels enhance stability by increasing SACCOs’ capacity to meet obligations, while firm size contributes through economies of scale. Liquidity, however, showed no significant effect on financial stability, indicating that its influence may be operational rather than strategic. The study concluded that higher deposit levels enhance financial stability by increasing the SACCOs’ capacity to meet obligations and build financial reserves. Capital adequacy was identified as a critical factor in buffering SACCOs against financial shocks, while firm size positively influenced financial stability by leveraging economies of scale. Liquidity, however, did not have a direct effect on financial stability, suggesting that its role may be more operational than strategic in the context of SACCOs. These findings underscore the importance of deposit mobilization, capital management, and growth strategies in strengthening financial stability. Based on these conclusions, the study recommends that policymakers and SACCO management focus on strategies to enhance deposit mobilization through innovative products and financial literacy programs. Regulatory authorities should enforce capital adequacy requirements to ensure SACCOs maintain sufficient buffers, and SACCOs should pursue growth strategies to leverage economies of scale. While liquidity management remains important, SACCOs should prioritize other factors that have a more pronounced impact on financial stability. Future research could investigate additional variables, such as governance practices,

Key Words:  Financial Stability; Deposit Taking Deposit Levels; Deposit Taking SACCOS