Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Cabinet Secretary Wycliffe Oparanya has lifted the suspension on the registration of new Savings and Credit Co-operative Societies (SACCOs).
“I am pleased to announce that the Ministry of Co-operatives and MSMEs Development, through the Commissioner for Co-operatives, has lifted the suspension on the registration of new SACCO societies with immediate effect,” Oparanya announced.
At the same time, the CS has introduced five stricter registration requirements for new applicants seeking to establish SACCOs.
CS Oparanya said that the registration of new SACCOs will now be subject to enhanced requirements aimed at promoting sustainability, accountability, and good governance as the ministry continues to strengthen the co-operative movement.
CS Oparanya Announces Major Changes in SACCO Registration Process
As part of the new requirements, individuals seeking to register a SACCO must prove they have a fully equipped and accessible physical office with at least one employee.
Applicants will also be required to have a minimum institutional capital of Ksh 1.2 million to support the formation and initial operations of the SACCO, excluding member deposits.
In addition, applicants must submit a comprehensive three-year business plan accompanied by cash flow projections and demonstrate the ability to mobilize at least Ksh 10 million in deposits within the first year of operation.
They must also fully comply with Sections 4, 5 and 6 of the Co-operative Societies Act and all relevant regulations.
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The ministry directed that all registration applications be submitted through the respective County Director for Co-operatives.
Oparanya said the move marks another important step in building stronger, more resilient, and member-driven SACCOs that contribute meaningfully to Kenya’s economic transformation and financial inclusion agenda.
Govt Halted SACCO Registration to Review Laws and Strengthen Oversight
The Ministry of Cooperatives suspended the registration of new SACCOs in May 2025 to allow a committee of experts to complete a comprehensive review of governance structures and regulatory alignment.
Oparanya announced that the registration of new SACCOs would be paused for three months to allow a newly constituted committee of experts to review existing SACCO laws and policies.
The committee, which was announced on April 16, 2025, presented its report on the transformation of the SACCO sector to President William Ruto on February 11, 2026, at State House, Nairobi.
The five-member committee, chaired by Marlene Shiels, the CEO of Capital Credit Union in Scotland, was tasked with reviewing the Sacco Societies Act of 2008.
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Its broader mandate included aligning the Sacco Societies Act with Cabinet-approved policy frameworks.
These included proposals to establish a central liquidity facility for SACCOs—similar to the interbank safety nets used by commercial banks—a deposit guarantee fund to safeguard members’ savings, and improved regulation for shared services within the SACCO ecosystem.
It was revealed in April this year that out of the 13,000 registered SACCOs in Kenya, only 2,700 consistently file annual returns with the Office of the Commissioner for Co-operatives as required by law.
The remaining majority—over 10,000—have failed to comply for several years, raising concerns about transparency, governance, and the safety of members’ deposits.
