Co‑operatives Cabinet Secretary Wycliffe Oparanya has cautioned more than 12,000 Savings and Credit Cooperative Societies (Saccos) that they risk deregistration for failing to file annual returns, in a move aimed at protecting citizens from dormant and fraudulent accounts.
Appearing before the Senate, Oparanya revealed that out of 14,000 registered Saccos, only 2,000 have complied with the Sacco Societies Regulatory Authority (SASRA) requirement to submit annual returns. He said the lack of accountability raises serious questions about transparency in the sector.
“I have communicated to the commissioner for cooperatives to submit the names of Saccos that have failed to file their returns. I give them thirty days to update their financial statements, failure to do so will lead to deregistration with the assumption that they are inactive and fraudsters,” Oparanya told senators.
The CS further disclosed that the government, working with the Central Bank of Kenya, will tighten regulations to ensure newly registered Saccos demonstrate a financial capacity of at least KSh10 million before approval. He said applicants must also submit relevant documentation through the commissioner of cooperatives to guarantee transparency.
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His remarks follow an investigation report indicating that weak regulations have been exploited to defraud citizens through inactive and dormant Saccos. Oparanya stressed that millions of Kenyans rely on Saccos to mobilise savings and access affordable credit, making it critical to weed out fraudulent operators.
“Saccos play a vital role in national development by offering accessible loans and mobilising funds. We must protect members by ensuring only genuine institutions operate in the sector,” he said.
The directive signals a tougher stance by the government on compliance, with stakeholders now watching closely to see how many Saccos will meet the 30‑day deadline or face deregistration.
By Victor Ochola
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