Co-operatives Cabinet Secretary Wycliffe Oparanya has lifted the suspension on the registration of new Savings and Credit Cooperative Organisations (SACCOs), paving the way for new entrants into the sector under tougher regulatory requirements.
The announcement, made on Wednesday, June 3, follows a review of laws and regulations governing cooperative societies by a committee of experts appointed by the Ministry of Co-operatives.
“I am pleased to announce that the Ministry of Co-operatives, through the Commissioner for Co-operatives, has lifted the suspension on the registration of new SACCOs with immediate effect,” Oparanya said.
He noted that the decision was informed by the successful completion of a review aimed at strengthening oversight and improving governance within the cooperative movement.
Under the new rules, individuals or groups seeking to register a SACCO will be required to meet several conditions intended to promote accountability, sustainability and financial stability.
Among the requirements is the establishment of a fully equipped and accessible physical office staffed by at least one employee.
Applicants must also demonstrate a minimum institutional capital of KSh1.2 million to support the SACCO’s formation and initial operations. The capital requirement excludes member deposits.
Also, new SACCOs need to hand in a thorough three-year plan along with cash flow forecasts. They gotta prove they can muster at least KSh10 million in deposits within their first year too.
The Cabinet Secretary stressed that all new SACCOs must completely adhere to Sections 4, 5, and 6 of the Co-operative Societies Act plus comply with other sector regulations.
“As we continue strengthening the co-operative movement, the registration of new SACCOs will now be subject to enhanced requirements aimed at promoting sustainability, accountability and good governance,” Oparanya stated.
He directed that all applications for registration be submitted through the respective County Director for Co-operatives.
The ministry says the new measures aim to create stronger and more resilient SACCOs to support financial inclusion and boost the economy.
Registrations restarted after being on pause for over a year. The government halted them back in May 2025 due to some serious issues with governance and operations.
This halt revealed big problems with oversight and made people worry about how well member savings were managed. Many thought tougher rules were needed.
For Kenya, SACCOs are a vital part of the financial system. They offer millions of people ways to save, get loans, and invest. With the new plan, officials hope to build trust with the public, protect member money, and make sure SACCOs stay stable in the long run.
