The National Assembly has dismissed what it called widespread misinformation surrounding the proposed Sacco Societies (Amendment) Bill, 2025, saying claims that the legislation would create a government controlled “super Sacco” or hand the President power over Sacco leadership are false.
In a public statement, the Assembly said the Bill, which seeks to amend the Sacco Societies Act, Cap. 490B, is still undergoing public participation and has not been rushed through Parliament.
The Bill was published on June 30, 2025, more than a year ago, and is currently before the Departmental Committee on Trade, Industry and Cooperatives for public input, according to Parliament.
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“The Committee is receiving views from the public and stakeholders. These submissions will inform amendments before the Bill proceeds to the next stage of consideration,” the statement said.
The Assembly said the Bill will not proceed directly for presidential assent even if approved by the National Assembly. Because the legislation concerns county governments, it must also go before the Senate under constitutional requirements.
Parliament said the Bill is meant to strengthen the Sacco sector, improve financial stability, protect member deposits and support the adoption of new technology. Among the proposed reforms are measures to cut operational costs for smaller Saccos, tighten oversight by the Sacco Societies Regulatory Authority (SASRA), curb fraudulent investment schemes and allow smaller Saccos to collaborate through shared platforms.
The Assembly denied claims that the Bill creates a “super Sacco.” Instead, it said the Bill proposes a secondary Sacco society whose membership would be limited to primary Saccos, meant to help smaller Saccos access payment systems, investment opportunities and fund reimbursement services.
“There is no provision for a ‘super Sacco’ as claimed,” the statement said.
Parliament also rejected reports that the President would gain power to appoint Sacco management committees. “There is no provision in the Bill that allows the President or government to appoint management committees or interfere with the election of Sacco officials,” the statement said. Directors of the proposed secondary Sacco would instead be elected by member Sacco societies.
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The Assembly further denied claims that the secondary Sacco would be allowed to lend to the government or to individuals. The Bill expressly bars the secondary cooperative society from lending to natural persons, Parliament said, and like other financial institutions, it may only invest in government securities such as Treasury bills and bonds.
Parliament also assured Sacco members that the Bill does not restrict withdrawal of savings or shares when a member resigns from their society, and denied that compensation for members would be capped at Ksh100,000 if a Sacco collapses.
“There is no provision in the Bill that sets a compensation limit. On the contrary, the Bill strengthens protection of members’ deposits by allowing claims to be made even after a Sacco’s licence has been revoked,” the statement said.
Liquidity requirements for Saccos will continue to be set by SASRA, Parliament said, dismissing claims that a proposed secondary Sacco would determine liquidity levels for individual Saccos.
The Assembly urged Kenyans to rely on official channels for accurate information and to take part in the ongoing public participation process before drawing conclusions on the Bill.
The Sacco sector remains a key pillar of Kenya’s economy, mobilizing billions of shillings in savings and providing affordable credit to millions of members. Lawmakers say public input will continue to shape the final legislation as debate continues.
Tags: Sacco Societies Amendment Bill, National Assembly, SASRA, Cooperative Movement, Kenya
By Kithinji Njeru
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