The Ministry of Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development has ushered in a new era for Kenya’s cooperative movement by inaugurating two pivotal bodies simultaneously. Cabinet Secretary Hon. Wycliffe Oparanya presided over the swearing-in of an expert committee to review the SACCO Societies Act, as well as a new KUSCCO leadership team. This marks a significant step in the government’s financial sector reform agenda.
The five-member expert committee will immediately begin work on a comprehensive review of the 2008 SACCO legislation. Their three-month mandate includes modernizing regulations to align with Kenya’s evolving financial landscape. Key priorities include establishing a Central Liquidity Facility and creating a SACCO Deposit Guarantee Fund — both of which are critical measures to protect members’ savings and ensure sector stability.
“This reform comes at a crucial moment for our cooperative movement,” CS Oparanya told attendees. “We’re building a regulatory framework that safeguards members while fostering growth.” The Cabinet Secretary emphasized that updated laws would enable Kenyan SACCOs to compete effectively in an increasingly digital financial environment.
Alongside the legislative review, KUSCCO welcomes new leadership following a successful transition period. The incoming board faces the dual challenge of implementing sector reforms while maintaining the organization’s role as the national SACCO umbrella body. Ministry officials praised the outgoing interim board for stabilizing the organization during a critical phase.
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These developments are part of the government’s broader efforts to strengthen Kenya’s cooperative sector. The ongoing legislative process for the Cooperative Societies Bill of 2024 complements the review of the SACCO Act, creating a more robust regulatory environment together. With over 14 million Kenyans relying on SACCOs for financial services, the reforms aim to address systemic issues.
