Ministry halts new SACCO registrations for three months
CS Oparanya stated that the pause will allow a team of experts to conduct a comprehensive review of the current SACCO landscape during this period.
The Ministry of Co-operatives and MSME Development has declared a temporary freeze on the registration of new Savings and Credit Cooperative Societies (SACCOs) for a period of three months.
Co-operatives Cabinet Secretary Wycliffe Oparanya stated that the pause will allow a team of experts to conduct a comprehensive review of the current SACCO landscape during this period.
The Ministry has also unveiled two new institutional bodies to enhance governance, accountability, and regulatory reforms in the cooperative sector.
These include a Committee of Experts to review the SACCO Societies Act and a Transition Board established for the Kenya Union of Savings and Credit Cooperatives (KUSCCO).
The goal of these reforms is to bring cooperative financing in line with international regulatory and governance standards.
A five-member committee has been appointed to spearhead the reforms, comprising Marlene Shiels (CEO, Capital Credit Union, Scotland), Maurice Smith (member, African American Credit Union Coalition, USA), Gina Carter (CEO, Husch Blackwell and Board Member, Redwood Credit Union, USA), Counsel Odhiambo Collins Harrison (Kenyan constitutional law expert), and Gamaliel Hassan (CEO, Stima DT SACCO).
They will be supported by a technical team led by Morris Muriungi and John Ongatta.
The committee has been given a three-month mandate to evaluate the effectiveness of the current Cooperatives Act, recommend legal and institutional reforms, and explore potential models like a Central Liquidity Facility, a Deposit Guarantee Fund, and shared services frameworks.
In addition, an 11-member Transition Board for KUSCCO has officially been inaugurated.
The board has been tasked with steering the restructuring and transformation of KUSCCO into a National Cooperative Federation.
CS Oparanya highlighted the board’s critical role in safeguarding members’ interests, recovering lost assets, and transitioning KUSCCO into a modern, efficient apex body for cooperatives.
The board is chaired by David Mategwa (Kenya National Police) and vice-chaired by Jennifer Mburu (Mhasibu).
Other members include Brenda Obondo (KMA), Robert Njue (WINAS), Osmane Khatolwa (Stima DT SACCO), John Ziro (Imarika DT SACCO), Philip Rirei (Noble), Michael Muriithi (Unaitas), Priscilla Maranga (Office of the Commissioner), Mary Kweyu (Invest and Grow), and Charles Kioko (GDC).
The new board will serve a two-year term, taking over from the interim board whose one-year mandate concluded on May 1, 2025.
The inauguration of these teams complements ongoing legislative initiatives, including the Co-operative Societies Bill of 2024, which is presently before the Senate for review.
CS Oparanya expressed confidence that the committee would carry out a comprehensive and impartial review of the existing legal frameworks.
He reaffirmed the ministry’s dedication to promoting inclusive financial systems anchored in cooperative models.
"These reforms aim to secure a sustainable future for the over 14 million SACCO members," Oparanya stated.
"We believe in the transformative potential of cooperatives, and that begins with sound governance and aligned policies."
The Ministry’s initiatives signal a pivotal step in modernizing Kenya’s cooperative sector, a key driver in the nation’s financial inclusion agenda.
