The Senate Committee on Trade, Industrialization and Tourism, chaired by Kwale Senator Issa Boy Juma today met with the Committee of Experts appointed to review the SACCO Societies Act, 2008 and its regulations.
The Ministry of Cooperatives and MSMEs Development had constituted the seven-member team to align the legal framework with the evolving needs of the SACCO sector and national development goals.
Committee Chairperson Marlene Shiels outlined the experts’ work over the past 17 weeks, noting extensive consultations with SACCOs, members and key institutions such as the Co-operative Bank and the Co-operative University of Kenya.
She highlighted three key reform proposals, establishing a Deposit Guarantee Fund to safeguard members’ savings, creating a SACCO-owned liquidity facility to address cash flow challenges and promoting shared services to improve access to modern platforms and ICT solutions.
She further emphasized the need to bring over 5,000 unregulated community SACCOs under formal oversight to ensure sustainability and protect members.
Supporting the proposals, Dr. Nelson Kuria, Group Chairperson of CIC Insurance, stressed the urgency of modernizing SACCOs, which have long supported education, small businesses and rural development.
He underscored the importance of reforms such as deposit protection, a central liquidity facility and shared services to keep SACCOs competitive with banks and digital lenders.
Dr. Gamaliel Hassan, CEO of Stima DT SACCO, noted that SACCOs, now among Kenya’s largest financial institutions, remain constrained by outdated laws.
He recalled their resilience during COVID-19 and urged reforms to strengthen their role in supporting SMEs, manufacturing, tourism and millions of Kenyans.
Senator George Mbugua welcomed the Committee of Experts, acknowledging their experience and stressing that challenges such as weak governance, inadequate liquidity and poor member deductions have eroded public trust. He particularly endorsed the creation of a deposit protection fund and the call for SACCOs to access the national payment system.
The Committee Chair Senator Juma commended the professionalism of the experts and assured them of the Senate’s full support, noting that their recommendations would be vital in restoring confidence and strengthening Kenya’s cooperative movement.
