A section of Savings and Credit Cooperative Societies (Saccos) has come out strongly against the proposed Sacco Societies Amendment Bill 2025, warning that the legislation could undermine the survival of smaller institutions and trigger job losses across the country.
Speaking during the launch of a new branch of Ammar Sacco in Mathioya, leaders and officials urged lawmakers to reject the proposal, which seeks to compel Saccos with deposits below Sh100 million to merge with larger entities.
East African Legislative Assembly (EALA) MP Maina Karobia, who presided over the event, described the Bill as ill‑advised and inconsistent with Kenya’s liberal economic framework. He noted that Saccos have played a pivotal role in empowering millions of Kenyans by offering affordable savings and loan services while nurturing entrepreneurship.
“Many Kenyans have greatly benefited from Saccos. Beyond deposits and withdrawals, they train members, support businesses, and have transformed lives through enterprise,” Karobia said. He cautioned that forced mergers could weaken grassroots financial institutions that have long provided communities with access to credit and improved livelihoods.
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Ammar Sacco, Chairman, Jeremiah Njoroge echoed the concerns, saying the uncertainty surrounding the Bill had already caused anxiety among members. “Since the Bill was introduced, many of our members have grown cold feet because they fear for the safety of their money,” he said.
Njoroge urged Parliament and the Senate to reject the proposal, stressing that small Saccos have created thousands of jobs and boosted financial inclusion, particularly in rural areas. He argued that instead of compelling mergers, the government should focus on strengthening regulation and supporting smaller cooperatives to grow sustainably.
Stakeholders at the event emphasised that Saccos remain central to Kenya’s economy, mobilising savings and extending credit to millions of members nationwide. They warned that the proposed law risks eroding the trust and resilience that have made Saccos a cornerstone of financial empowerment for ordinary Kenyans.
By Masaki Enock
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