- New measures target deposits, shared services and cyber risks
- SASRA gains wider powers over financial crime compliance
- Proposed reforms could reshape liquidity and deposit protection systems
Kenya’s Sacco sector is facing significant regulatory changes following new measures on deposit protection, money laundering, shared financial services and cybersecurity.
The developments, which are contained in the 2025 Sacco Supervision Annual Report, highlight key legal and regulatory changes affecting the industry during the year.
One of the major developments was the Sacco Societies (Amendment) Bill, No. 32 of 2025, introduced in the National Assembly.
The proposed law seeks to operationalise the Deposit Guarantee Fund (DGF) and create a framework for a central liquidity and shared services business for regulated Saccos.
Under the proposal, the DGF would be allowed time to accumulate enough funds before it begins making payments arising from the failure of a regulated Sacco. The Bill also addresses the appointment of independent members to the fund’s Board of Trustees.
It further provides for groups of regulated Saccos to establish a secondary Sacco society that can offer shared services to primary Saccos.
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The services may include liquidity facilities, interlending, access to the national payments system, Information and Communication Technology (ICT) and digital platforms, liquidity management, and payment and settlement services.
Meanwhile, the report has also highlighted changes to the Sacco Societies Act that took effect in July 2025. They give the Sacco Societies Regulatory Authority (SASRA) powers to oversee anti-money laundering, combating the financing of terrorism and proliferation financing requirements.
SASRA can vet Sacco officers, carry out inspections and surveillance, issue regulatory directions and impose monetary, civil or administrative sanctions for violations.
By December 2025, 349 regulated Saccos had fully registered on the Financial Reporting Centre’s goAML electronic reporting portal, while eight were still at different stages of registration.
Lastly, cybersecurity has also become a key regulatory concern. In April 2025, the National Computer and Cybercrimes Coordination Committee designated SASRA as the Sacco sub-sector Cyber Security Operations Centre (SOC).
This move provides a coordination framework for detecting and responding to cyber threats affecting Saccos. SASRA has since continued monitoring threats in collaboration with relevant national intelligence agencies and issuing alerts when potential attacks are identified.
The developments come as the Sacco industry continues to expand its financial and digital services, increasing the need for stronger safeguards around members’ funds, financial crime compliance and cyber threats.
By Lizzy Aluga
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