Wetang’ula urges MPs to reform SACCO laws to protect savings
By Kenneth Mwenda, June 13, 2026Speaker of the National Assembly Moses Masika Wetang’ula has called on Members of Parliament to urgently review Kenya’s cooperative laws, warning that weak governance and legal loopholes continue to expose millions of SACCO members to financial losses.
In a post shared on Saturday, June 13, 2026, Wetang’ula said Parliament must move fast to close gaps that allow mismanagement and plunder of members’ savings within Savings and Credit Cooperative Organisations (SACCOs).
“I have urged Members of Parliament to urgently review cooperative laws and close loopholes that expose members’ savings to mismanagement and loss,” he said.
He added that a full legal review is necessary to strengthen oversight and restore confidence in the sector, which he described as critical to household savings and economic growth.
Speaking during the launch of Shirikiana SACCO at Masinde Muliro University of Science and Technology, Wetang’ula said cooperatives remain key tools for reducing poverty and building wealth among Kenyans. He encouraged more citizens, especially farmers and small business owners, to join SACCOs as a safe way of saving and accessing credit.
Sweden model emphasised
The Speaker cited Sweden as an example of a strong cooperative culture, noting that citizens there participate in cooperatives regardless of social status, helping to build long-term financial stability.
Wetang’ula also welcomed recent government efforts to strengthen the sector, including the appointment of Wycliffe Oparanya as Cabinet Secretary for Cooperatives and SMEs, saying it would help raise the profile of the movement.
He further called on the parliamentary committee led by Ikolomani MP Bernard Shinali to strengthen oversight mechanisms and ensure SACCO members’ funds are protected from misuse.
According to Wetang’ula, governance failures remain the biggest threat facing the cooperative sector. He warned that without strict reforms, SACCOs risk losing public trust despite their importance in financial inclusion.
Experts and recent policy proposals have echoed similar concerns, with government plans underway to introduce reforms such as a deposit guarantee fund and stronger regulation under the Sacco Societies Regulatory Authority (SASRA). These measures aim to protect savers in case of SACCO failure and improve accountability across the sector.
Wetang’ula said SACCOs have also supported his own family over the years through dividends and financial assistance, underscoring their personal and national importance.
He concluded by urging political unity, especially among leaders in Western Kenya and across the country, saying cooperation and stability are essential for economic development and shared prosperity.