The government has issued a warning to thousands of Saccos that risk losing their licenses over failure to meet legal reporting requirements.
Co-operatives and MSME Development Cabinet Secretary Wycliffe Oparanya said more than 10,000 out of the country’s 13,000 registered Saccos have not been submitting annual returns to the Commissioner for Co-operatives. Only about 2,700 are compliant, raising concerns over accountability and the safety of members’ savings.
Speaking during a three-day forum for cooperative leaders, Oparanya announced that non-compliant Saccos will be given 21 days to file their returns, including audited financial statements. He warned that those who fail to meet the deadline will have their licenses revoked.
The CS noted that the lack of compliance has limited government oversight, leaving thousands of Saccos operating without clear visibility. A recent review of the Sacco Societies Act also found that over 5,000 Saccos remain unregulated, posing risks to the stability of the sector.
Oparanya also noted that the government is driving consolidation within the sector to address inefficiencies, noting that only a small portion of registered cooperatives are financially viable.
“Moving forward, we will encourage mergers and take decisive action on non-performing entities,” Oparanya said.
Further, the government is developing a 30-year Cooperative Movement Strategic Plan to guide long term growth, strenthen institutions, and align the sector with global best practices, including repositioning within the broader credit union framework.
The CS also said that all Saccos will be required to integrate technology and adopt shared services as a condition for licensing. This is aimed at enhancing transparency, efficiency and international controls.
“These reforms are aimed at building a resilient, well-governed, and sustainable cooperative sector that truly serves its members,” Oparanya said.
Commissioner for Co-operative Development David Obonyo and Cooperative Alliance of Kenya CEO Daniel Marube emphasised the need for strong governance, transparency and legal reforms. Leaders also backed the rollout of a Deposit Protection Fund to safeguard members’ savings, alongside efforts to fast-track pending cooperative laws.
