The government has announced reforms to restore stability and safeguard member savings in the Savings and Credit Cooperative Organisation (SACCO) sector.

This comes even as the stakeholders continue to decry the loss of Ksh13 billion by the Kenya Union of Savings and Credit Co-operatives (KUSCCO), and Metropolitan SACCO members lose Ksh7 billion.

Speaking on Monday, December 8, 2025, at the opening of the 10th KUSCCO Annual Leaders’ Summit at Sarova Whitesands Hotel in Mombasa, Cabinet Secretary for Cooperatives and MSME Development, Wycliffe Oparanya, reaffirmed the state’s commitment to tightening oversight and protecting depositors.

“We must ensure legislation protects members’ savings,” Oparanya said, stressing that amendments to the Sacco Societies Act will entrench transparency, digital integration, and institutional accountability across the industry.

Oparanya noted that Kenya, currently ranked eighth globally and first in Africa in cooperative financial systems, must reinforce governance to maintain its leadership position.

To achieve this, the CS outlined a series of structural reforms designed to prevent future governance breaches and strengthen the Sacco ecosystem.

These include empowering SASRA as the primary supervisory authority to enhance sector oversight, establishing a Deposit Protection Fund and a Savings Stabilisation Fund to cushion members against losses, and creating a Central Liquidity Facility to provide emergency support to Saccos facing short-term cash flow gaps.

SACCO registration and verification

The CS also announced mandatory professional registration for SACCO board members and executives to curb leadership recycling.

“Those who create governance failures in one Sacco will not be allowed to shift to another. Integrity is non-negotiable,” Oparanya said.

 He revealed that a committee of experts appointed in May last year had completed a comprehensive review of the Sacco Societies Act of 2008, with support from the African Confederation of Cooperative Savings and Credit Associations (ACOSCA). The final report will be presented to the President, followed by a five-year phased implementation.

“We are confident that if the recommendations are fully implemented, Kenya will achieve a new global benchmark in the Sacco industry,” Oparanya added.

On his part, KUSCCO National Chairman David Mategwa assured delegates that the union has intensified recovery efforts following last year’s losses. Property auctions have begun, and recovered funds have already been credited back to affected Saccos.

“We came in with a transformation agenda. Recoveries are ongoing, auctions have begun, and funds are being returned,” Mategwa said.

“Challenges remain, but we are on the right path. We have cleared pending bills and resumed our advocacy mandate.”

He urged Saccos to continue paying subscriptions and participating in governance training, emphasising that strong oversight and transparency are key to rebuilding trust.

“Any money coming out of KUSCCO must go through proper digital processes, leaving a record so it can be tracked. That is the accountability we stand for,” Mategwa added.