SACCOs Required to Adopt Technology & Shared Services as New Licensing Conditions
Cooperatives Cabinet Secretary Wycliffe Oparanya announced the directive on April 9, 2026, during a stakeholders’ meeting at Lake Naivasha Resort. The move marks a significant shift in regulatory expectations for SACCOs, many of which have faced scrutiny over governance and financial management challenges in recent years.
“Digitisation is no longer optional. All SACCOs will be required to integrate technology and adopt shared services as a condition for licensing to enhance transparency, efficiency and internal controls,” Oparanya said.
The directive is part of a broader reform agenda targeting improved accountability, operational efficiency, and protection of members’ savings within the cooperative sector. Kenya’s SACCO industry, one of the largest in Africa, plays a critical role in financial inclusion, particularly for low- and middle-income earners.
In addition to the digitisation requirement, the CS announced plans to strengthen the mandate of the Sacco Societies Regulatory Authority (SASRA), the body responsible for regulating deposit-taking SACCOs. The enhanced mandate is expected to improve compliance monitoring and enforce stricter governance standards across the sector.
Other proposed measures include rigorous vetting of SACCO leadership, tighter enforcement of corporate governance rules, and the introduction of safeguards aimed at preventing mismanagement and fraud.
“These measures are designed to address long-standing concerns about weak supervision and governance gaps that have exposed members’ savings to risk,” Oparanya noted.
The government is also pushing for consolidation within the cooperative movement, citing inefficiencies and the low financial viability of many registered entities. According to the CS, only a small proportion of SACCOs are currently sustainable, prompting the need for structural reforms.
“We are driving consolidation within the sector to address inefficiencies, noting that only a small proportion of registered cooperatives are financially viable,” he stated.
“Moving forward, we will encourage mergers and take decisive action on non-performing entities,” Oparanya added.
Industry experts say such measures could boost public confidence in SACCOs, which have occasionally been rocked by cases of insolvency and mismanagement. A deposit guarantee scheme, in particular, is seen as a critical safety net for members’ savings.
During the meeting, Oparanya also revealed that the government is developing a comprehensive 30-year Cooperative Movement Strategic Plan. The long-term blueprint is expected to guide the sector’s growth and align it with global best practices in cooperative governance and financial management.
“The strategic plan will provide a roadmap for sustainable growth and ensure that Kenya’s SACCO sector remains competitive and resilient,” he said.
The reforms signal a decisive push by the government to modernise the cooperative sector, enhance transparency, and protect millions of Kenyans who rely on SACCOs for savings and credit services.
As implementation begins, SACCOs across the country will be required to adapt quickly to the new regulatory framework or risk losing their licences, setting the stage for a more streamlined and accountable sector.
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SACCOs Required to Adopt Technology & Shared Services as New Licensing Conditions
