The Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development Cabinet Secretary Wycliffe Oparanya has warned that dormant and non-compliant SACCOs face deregistration and liquidation in accordance with the law.
Speaking during the opening of the 11th Annual SACCO Leaders Convention organized by Kenya Union of Savings and Credit Co-operatives (KUSCCO) Limitedd at the PrideInn Hotel Mombasa, Oparanya said the government remains committed to supporting cooperatives, but insisted that the sector must uphold strict regulatory standards.
“The government will continue to support SACCOs, but compliance is not negotiable, accountability is not optional, and integrity must be at the heart of every SACCO,” he said.
Oparanya said the tough stance aims at strengthen sector governance, enhance public trust and promote responsible leadership.
He said that although many SACCOs are currently in operation, only small fractions comply with regulations and actively serve the interests of their members.
He noted that societies must submit audited financial reports and all required compliance documents on time, stressing that failure to do so undermines institutional credibility.
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He added that viable cooperatives will continue operating under enhanced supervision and stricter governance measures to safeguard members’ savings.
The CS also announced a temporary moratorium on the registration of new SACCOs to allow for a comprehensive sector review and regulatory assessment.
Oparanya further expressed concern that some SACCOs continue to hire audit firms lacking the capacity to deliver quality services, warning that such practices expose members to significant financial risks.
“There are cases of compromised auditors’ independence and inadequate professional diligence leading to mismanagement of financial positions,” he said.
He further directed that no SACCO should be audited by the same audit firm for more than three years, saying the rotation is crucial for enhancing accountability, transparency, and safeguarding members’ funds.
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Oparanya stressed that SACCOs must appoint reputable audit firms with the capacity to deliver high-quality financial, ICT, and forensic audit services.
He said strong audit assurance will reinforce internal controls, strengthen governance structures, and help prevent conflicts within the cooperative sector.
Oparanya added that good governance and financial discipline remain the foundation of a stable and trustworthy cooperative movement.
He said the government is determined to build a sector where financial discipline translates into sustainable growth.
The CS said firm financial management is essential in restoring public confidence and reinforcing governance within the cooperative sector.
“Together, we must restore confidence, strengthen governance and secure the future of the cooperative movement for generations to come,” he said.
By Shaban Omar
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Cooperative CS Wycliffe Oparanya addresses CEOs during the opening of the 11th Annual SACCO Leaders Convention organized by KUSCCO Ltd at the PrideInn Hotel Mombasa County on Monday, February 16, 2026.
Cooperative CS Wycliffe Oparanya attends the 11th Annual SACCO Leaders Convention organized by KUSCCO Ltd at the PrideInn Hotel Mombasa County on Monday, February 16, 2026.
A section of CEOs participates in the 11th Annual SACCO Leaders Convention organized by KUSCCO Ltd at the PrideInn Hotel Mombasa County on Monday, February 16, 2026.
