Govt suspends licenses of multiple SACCOs amid regulatory crackdown
By Aloys Michael, February 3, 2026The government, via the Savings and Credit Cooperative Societies Regulatory Authority (SASRA), has suspended the licences of five Savings and Credit Cooperative Societies (SACCOs), citing regulatory concerns. The action takes immediate effect, affecting members and operations across several counties.
According to a notice issued by the My Govt on Tuesday, February 3, 2026, SASRA announced that the licences of the five SACCOs, located in Nairobi, Samburu, Kiambu, Marsabit, and Kajiado, will remain restricted for the next 12 months, pending compliance with regulatory requirements.
The five credit cooperatives were limited to credit-only operations and prohibited from receiving new deposits from their members during the 2026 licensing period.
“In accordance with section 26(3) of the Sacco Societies Act as read with regulation 8 of the said Regulations 2010 and regulation 6 of the said Regulations 2020, the FIVE (5) Sacco Societies listed in SCHEDULE III herein have been issued with Conditionally Restricted Licenses and Authorizations limiting their SACCO businesses to Credit-Only, for the period commencing 1st January 2026 to 31st December 2026, and are therefore strictly prohibited from taking new and/or any further deposits from the members and/ or any member of the public, and are subject to additional conditions imposed on their respective Licenses and Authorizations,” the notice read.
At the same time, one SACCO was listed as having voluntarily ceased operations after merging its membership with another regulated credit cooperative in 2025.
Its licence was automatically revoked upon expiry, and it was prohibited from conducting any SACCO business from January this year, pending deregistration and liquidation.
Additionally, SASRA revoked the licence of another SACCO after its authorisation expired, as it failed to apply for licence renewal by December 31, 2025, as required by the law.
According to the notice, 176 SACCO societies have been duly licensed to conduct deposit-taking business, while an additional 176 have been allowed to undertake non-deposit-taking business.
PHOTO/Pexels
While making the announcement, SASRA Chief Executive Officer David Sandagi said the licensed SACCOs met all the regulatory requirements set out under the Sacco Societies Act of 2010.
He went on to caution members of the public against transacting with unlicensed or unauthorised SACCOs, warning that doing so is at one’s own risk.
The Authority also called on employers and other entities to stop facilitating unlawful SACCO activities through payroll deductions, remittances, or digital channels.
“Every licensed SACCO is required at all times to display the original licence or authorisation certificate in a conspicuous place at its registered Head Offices, branches and places of business,” the notice read.
“Regulated SACCO Societies are strictly prohibited from placing or investing members’ funds in the deposits of and/or equities of any unregulated entity or engaging in prohibited or non-core business.”