Government suspends new SACCO registrations for three months
The Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development has announced a three-month suspension on the registration of new Savings and Credit Cooperative Societies (SACCOs).
Co-operatives Cabinet Secretary Wycliffe Oparanya said the move will allow a newly formed committee of experts to review the SACCO sector and recommend legal and institutional reforms.
At the same time, the government has introduced two new bodies to help improve governance, accountability, and regulation within the cooperative sector. These are a Committee of Experts to review the SACCO Societies Act and a Transition Board to guide the transformation of the Kenya Union of Savings and Credit Cooperatives (KUSCCO).
The five-member expert committee is led by Marlene Shiels, CEO of Capital Credit Union in Scotland. Other members include Maurice Smith from the African American Credit Union Coalition in the USA, Gina Carter of Husch Blackwell and Redwood Credit Union in the USA, Kenyan legal expert Odhiambo Collins Harrison, and Gamaliel Hassan, CEO of Stima DT SACCO.
They will be supported by a technical team led by Morris Muriungi and John Ongatta.
Over the next three months, the committee will evaluate the current SACCO laws and suggest changes to strengthen the sector. They will also explore the creation of key financial tools such as a Central Liquidity Facility and a Deposit Guarantee Fund.
Meanwhile, the ministry has appointed an 11-member Transition Board to oversee the restructuring of KUSCCO into a modern National Cooperative Federation.
The board is chaired by David Mategwa (Kenya National Police SACCO) and vice-chaired by Jennifer Mburu (Mhasibu SACCO). Other members include representatives from various SACCOs and the Office of the Commissioner for Cooperatives.
CS Oparanya said the board will help recover assets, protect member savings, and modernize the national cooperative body.
“These reforms are meant to secure a better future for over 14 million SACCO members in Kenya,” said Oparanya.
“We are committed to strong governance, accountability, and aligning our cooperative systems with international best practices.”
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. satrendmagazine@gmail.com
