The Government of Kenya, through the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSME) Development, has suspended the registration of new Savings and Credit Cooperative Organizations (SACCOs) for a period of three months. The move is part of a broader reform strategy aimed at strengthening governance and institutional accountability in the SACCO sector.
Cabinet Secretary Wycliffe Oparanya announced the suspension on Wednesday during the inauguration of two critical institutional frameworks: a five-member Committee of Experts and a new Transition Board of Directors for the Kenya Union of Savings and Credit Cooperatives (KUSCCO).
The expert committee has been tasked with reviewing the SACCO Societies Act of 2008 and proposing comprehensive legislative and institutional reforms that reflect both emerging sector trends and international best practices.
“We have also suspended the registration of new SACCOs for three months. The suspension will allow the committee of experts to finalise its review of governance and policy alignment,” said CS Oparanya.
The Transition Board of KUSCCO has been appointed by the Commissioner for Cooperatives and will serve a two-year term. The new leadership is expected to steer the national SACCO body through this critical transition period, working alongside the Ministry to implement key recommendations once the expert review is complete.
The government’s actions signal a commitment to reforming Kenya’s cooperative sector, ensuring resilience, sustainability, and improved oversight across the SACCO ecosystem — a vital source of financial services for millions of Kenyans.
