Cabinet Secretary for Cooperatives and MSMEs Wycliffe Ambetsa Oparanya has warned that there is “no room for weak governance” in Kenya’s SACCO sector as rapid membership growth and rising loan demand increase the responsibility placed on cooperative institutions.
Oparanya spoke in Mombasa during the 2026 Annual Delegates Congress (ADC) training for the Kenya National Police DT SACCO, which brought together delegates from across the country for a multi-cohort forum held at the PrideInn Paradise Beach Resort & Spa under the theme “Empowering Leadership for Sustainability.”
The Cabinet Secretary said SACCOs remain among Kenya’s strongest economic pillars, noting that national membership grew from 6.42 million in 2022 to 6.84 million in 2024, with loan demand continuing to rise, a trend he said reflects sustained public trust but also heightened governance expectations.
“As SACCOs grow, responsibility also increases. There is no room for weak governance. Systems must be strengthened and accountability enforced,” Oparanya said, warning that the government would not tolerate mismanagement in institutions entrusted with members’ savings.
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He revealed that the government is reviewing the SACCO Societies Act of 2008 to align the law with digital innovation, emerging risks and international best practices. The review, he said, is aimed at safeguarding deposits, strengthening oversight and enhancing sector stability.
On taxation, the Cabinet Secretary said the ministry is working with the Kenya Revenue Authority, Parliament and the National Treasury to develop a “fair, clear and predictable” tax framework that supports SACCO growth while ensuring compliance.
Oparanya also urged cooperatives to tap into emerging opportunities such as climate finance, green energy, sustainable agriculture and carbon markets, noting that SACCOs’ grassroots presence positions them well to finance community-based climate solutions while diversifying income streams.
Commissioner for Co-operatives Development Daniel Obonyo said the ADC training was critical in equipping newly elected delegates with cooperative principles, financial knowledge and an understanding of SACCO operations ahead of annual decision-making meetings.
“Delegates must be informed and educated to make quality decisions on behalf of members,” Obonyo said.
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He noted that most SACCOs recorded strong performance in 2025, with the sector projected to grow by an average of 10 per cent in 2026, up from 8-9 per cent last year. However, liquidity challenges remain, particularly where members borrow more than they save.
To address this, Obonyo said the government is proposing amendments to the Cooperative Act to introduce a central liquidity fund and shared services platforms, allowing SACCOs to temporarily support one another through inter-borrowing and reduce ICT costs for smaller societies.
He further announced that SACCOs with membership exceeding 5,000 will be required to adopt a delegates system to enhance efficiency in decision-making.
The Kenya Police DT SACCO was commended during the congress after being ranked the second best-managed SACCO in the country during the 2025 Ushirika Day celebrations, in recognition of strong leadership, governance and accountability.
By Mercy Kokwon
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