Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development Cabinet Secretary Wycliffe Oparanya has unveiled sweeping reforms aimed at strengthening Kenya’s savings and credit cooperative (SACCO) sector.

In a statement dated May 21, 2025, Oparanya announced two new key institutional frameworks as part of the government’s broader agenda to enhance governance and accountability throughout the cooperative sector.

According to Oparanya, the reforms entail the formation of a five-member Committee of Experts tasked with reviewing the SACCO Societies Act of 2008 and the appointment of a new transition board for the Kenya Union of Savings and Credit Cooperatives (KUSCCO).

“The Ministry of Co-operatives and MSMEs Development, in line with the government’s commitment to reform and strengthen the SACCO sector, today announces the inauguration of two key institutional frameworks aimed at accelerating governance, accountability, and regulatory reforms,” he stated.

Expert panel

The newly appointed five-member Committee, chaired by Marlene Shiels, CEO of Capital Credit Union in Scotland, has been given a three-month mandate to evaluate the current SACCO Societies Act and propose legislative and institutional reforms that align with emerging sectoral trends and global best practices.

The committee’s responsibilities include assessing the Act’s relevance, proposing regulations to establish a central liquidity facility and a deposit guarantee fund, developing a shared services legal and administrative framework, and benchmarking Kenya’s SACCO model against international counterparts.

“The committee is further mandated to review the SACCO Regulations to support effective implementation, analyse current SACCO operations within the regulatory environment, benchmark with global SACCO models and recommend context-specific solutions, and evaluate SACCO administrative structures for efficiency and effectiveness,” the statement added.

Other committee members include Maurice Smith from the African American Credit Union Coalition (USA), Gina Carter, a U.S.-based legal and cooperative governance expert, Kenyan constitutional law expert Odhiambo Collins Harrison, and Gamaliel Hassan, CEO of Stima DT SACCO.

The five will be supported by a two-member team consisting of Morris Mworia Muriungi and John B. Ongatta.

Upon completion of their term, the committee is expected to present actionable recommendations to support future amendments to the SACCO Societies Act.

New KUSSCO board

In a parallel move, Oparanya also presided over the inauguration of a new KUSCCO Transition Board, which will serve for a two-year term.

This new board, led by David Mategwa, National Chairperson of the Kenya National Police DT SACCO, replaces the previous interim board, whose one-year term concluded on May 1, 2025.

The 11-member board, appointed by the Commissioner for Cooperative Development, will oversee the restructuring of KUSCCO, protect member assets, and prepare the union for its transformation into a National Cooperative Federation.

“On behalf of the Ministry, I congratulate the newly inaugurated Committee of Experts and KUSCCO Board Members,” Oparanya stated.

Other board members include Jennifer Mburu of Mhasibu SACCO who serves as the Vice Chairperson, along with representatives from SACCOs such as WINAS, Stima DT, Imarika, Unaitas, KMA, Noble, Invest and Grow, GDC, as well as the Commissioner’s representative.

“Members of the KUSCCO board include David Mategwa, Jennifer Mburu, Robert Njue, Osmane Khatolwa, John Ziro, Brenda Obondo, Philip Rirei, Michael Muriithi, Priscilla Maranga, Mary Kweyu and Charles Kioko,” the statement reads.

Legislative efforts

According to Oparanya, the reforms complement ongoing legislative efforts, including the Cooperative Societies Bill, 2024, currently before the Senate, and proposed amendments to the SACCO Societies Act.

“These two inaugurations are part of a broader reform agenda to strengthen the SACCO sector’s resilience, accountability, and sustainability,” Oparanya said.

He emphasised the ministry’s commitment to fostering inclusive financial systems through well-structured cooperative models.

“We look forward to their leadership in implementing reforms that benefit millions of SACCO members across Kenya,” he concluded.