Gov’t pushes for SACCO digital and governance overhaul as sector reform talks intensify

The Government has stepped up efforts to overhaul the Savings and Credit Cooperative (SACCO) sector, with a strong focus on digital transformation and improved governance as reform discussions gain momentum.

This came up during a high-level stakeholder engagement convened by Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya, together with Principal Secretary Patrick Kilemi that brought together industry players, development partners, and policymakers to chart the next phase of SACCO sector reforms.

The discussions focused on strengthening shared services infrastructure, accelerating digitisation across SACCO operations, enhancing liquidity management systems, and reinforcing governance and compliance frameworks. Stakeholders also explored measures aimed at improving efficiency, transparency, and resilience within member-owned financial institutions.

According to participants, the reforms are intended to position SACCOs as more competitive and sustainable financial institutions capable of meeting evolving member needs while safeguarding stability in an increasingly digital financial environment.

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Speaking during the forum, Oparanya underscored the importance of collective commitment to the reform agenda, noting that a modernised SACCO sector is central to advancing financial inclusion and supporting the Bottom-Up Economic Transformation Agenda (BETA).

He said the ongoing reforms are expected to strengthen member-owned institutions and expand access to affordable financial services, particularly at the grassroots level.

The government says the continued engagement with stakeholders marks a critical step toward aligning the cooperative movement with global best practices, with digitalisation and stronger governance emerging as the core pillars of the transformation drive.

By Juma Ndigo

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