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, effective immediately.
The decision follows the completion of a review of the legislative and regulatory framework governing SACCOs by a Committee of Experts appointed by Cabinet Secretary Wycliffe Oparanya.
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.
In a statement issued on Wednesday, June 3, 2026, Commissioner for Co-operatives David Obonyo said the move was informed by the successful review of laws and regulations governing the sector, with the aim of strengthening sustainability, accountability and good governance among SACCO societies.
While announcing the resumption of new registrations, Obonyo noted that applicants will now be required to meet stricter conditions designed to ensure the establishment of viable and well-governed institutions.
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Under the new requirements, applicants seeking to register a SACCO must demonstrate the existence of a fully equipped and accessible physical office with at least one employee.
They must also have a minimum institutional capital of Ksh 1.2 million for formation and initial operations, excluding member deposits, and submit a three-year business plan accompanied by cash flow projections.
In addition, applicants will be required to demonstrate the capacity to mobilize at least Ksh 10 million in deposits within the first year of operation and comply with the provisions of Sections 4, 5 and 6 of the Co-operative Societies Act, as well as other relevant regulations.
The Ministry directed that all applications for new SACCO registrations be submitted through the respective County Directors for Co-operatives across the country.
The new measures are expected to enhance the stability and integrity of the SACCO sector while promoting prudent management and long-term growth.
By Obegi Malack
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