- SASRA says proposed SACCO Bill will establish a Deposit Guarantee Fund to protect members’ eligible savings.
- Regulator says reforms will strengthen liquidity management and improve stability across the SACCO sector.
- Clarification comes amid misinformation linking members’ savings to the National Infrastructure Fund.
The Sacco Societies Regulatory Authority (SASRA) has clarified that the proposed Sacco Societies (Amendment) Bill aims to operationalise the Deposit Guarantee Fund to safeguard members’ savings.
According to an infographic released by the regulator, the fund would protect eligible deposits in the event a Savings and Credit Cooperative (SACCO) has its licence revoked.
“The Bill seeks to operationalise the Deposit Guarantee Fund to protect eligible deposits where a SACCO’s licence is revoked. It would also clarify the governance of the Fund and the process for paying eligible claims,” reads the infographic by SASRA.
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According to SASRA, the proposed reforms are also intended to strengthen liquidity management and enable qualifying secondary SACCOs to participate in Kenya’s interbank market, subject to meeting the applicable regulatory requirements.
“These measures are expected to strengthen SACCO-sector stability, protect members’ savings, reduce transaction costs, promote innovation and expand financial inclusion,” said SASRA, emphasizing that the goal is a safe, more efficient and member-centred Sacco sector.
The remarks come amid government efforts to counter claims that members’ Sacco savings will be used to finance the National Infrastructure Fund.
The clarification follows growing public concern over the proposed Sacco Societies (Amendment) Bill, 2025, which has been accompanied by widespread misinformation alleging that the legislation would grant the government sweeping powers over members’ deposits and the management of cooperative societies.
By Frank Mugwe
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