State suspends registration of new SACCOs for 3 months

Cooperative CS Wycliffe Oparanya [OPARANYA/X]

Cooperatives Cabinet Secretary Wycliffe Oparanya has announced a three-month suspension on the registration of new Savings and Credit Cooperatives (SACCOs) as part of a wider reform agenda targeting governance and policy compliance in the sector.

Speaking on Wednesday during the inauguration of the new Transition Board of Directors of the Kenya Union of Savings and Credit Co-operatives (KUSCCO), Oparanya said the move will provide room for a committee of experts to complete a comprehensive review of governance structures and regulatory alignment.

“We have suspended the registration of new SACCOs for three months. The suspension will allow a committee of experts to finalise its review of governance and policy alignment,” the CS stated.

Oparanya emphasised that the measure was necessary to rein in “briefcase SACCOs”, which are often unregulated and often fraudulent entities that undermine trust and stability in the sector.

He noted that the suspension is a proactive step towards restoring order and ensuring only credible cooperatives operate within the legal framework.

In addition to the suspension, the ministry also unveiled a five-member committee of experts tasked with reviewing the SACCO Societies Act, 2008.

Their mandate includes proposing legislative and institutional reforms that reflect current trends in the cooperative sector and align with international best practices.

The CS also presided over the installation of a new Transition Board of Directors for KUSCCO, appointed by the Commissioner for Cooperatives.

“The Ministry has also presided over the inauguration of the new Transition Board of Directors of the Kuscco for a two-year term, following appointment by the Commissioner for Cooperatives,” he said.

Oparanya expressed confidence that both the committee and the new KUSCCO board would play a pivotal role in strengthening SACCO resilience, enhancing accountability, and driving meaningful reforms.

The move signals a renewed commitment by the government to stabilise and professionalise Kenya’s cooperative sector, which plays a key role in financial inclusion and grassroots economic development.