The government has raised alarm over the rising number of Savings and Credit Cooperative Societies (Saccos) being registered in the run‑up to the 2027 General Election, warning that many are being formed with the sole intention of defrauding unsuspecting Kenyans.
Cabinet Secretary for Cooperatives and MSMEs Development Wycliffe Oparanya said the ministry will tighten regulations in the cooperative sector to weed out dormant and fraudulent societies, ensuring only viable institutions are licensed to operate.
Speaking during training for Shirikiana Sacco delegates, Oparanya noted that it has become common for individuals to establish Saccos during election periods, conduct fundraising drives, and later disappear with members’ contributions.
“We want institutions that are active and sustainable, not those formed to defraud Kenyans. Whenever we approach an election period, people come together, form Saccos, hold harambees, and after elections, they disappear,” CS Oparanya said.
As part of reforms, the ministry has introduced new requirements that any Sacco seeking registration must have a minimum capital base of Sh10 million within its county of operation. “We have changed the regulations so that for us to license a Sacco, it must have at least Sh10 million. We want to eliminate lazy Saccos that are out to defraud Kenyans and deal only with serious institutions,” Oparanya explained.
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The CS expressed concern over the large number of dormant cooperatives in the country. Although the Commissioner’s register lists more than 30,000 cooperatives, only about 2,000 regularly file returns. “If you look at the register, we have over 30,000 cooperatives, but when it comes to filing returns, only around 2,000 are compliant. You then wonder where the rest are. That is why we must tighten our laws to ensure we have active and accountable Saccos,” he said.
In addition, the government is seeking to raise the minimum membership threshold required to register a Sacco from the current 10 members to at least 1,000 members. “Right now, the law allows ten people to come together and form a Sacco, but we are saying that number is too small for a viable organisation. We want the threshold increased to 1,000 members,” Oparanya said.
According to Oparanya, the reforms are aimed at strengthening accountability, protecting members’ savings, and ensuring that only credible cooperatives contribute to Kenya’s economic growth.
By Masaki Enock
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