SACCOs should access full deposits from Deposit Guarantee Fund, says Credence Africa

Credence Africa Executive Director Muthoni Njoroge, has called for a review of the Sacco Societies (Amendment) Bill, 2025, to ensure that SACCOs fully benefit from the proposed Deposit Guarantee Fund (DGF), rather than receiving compensation through a fixed percentage.

Speaking at the Cooperative Expo 2026 at Uhuru Park, Nairobi;  Muthoni highlighted that the DGF, which is yet to become law, is intended to provide a deposit insurance mechanism for deposit taking SACCOs, compensating members up to specified coverage limits in the event of a SACCO’s failure.

“How can you tell them to put 10% of their own money somewhere if they ever go down they can only get 10% of the money ,” she said.

She emphasized that while the introduction of the Deposit Guarantee Fund is a positive step, the law should be re-examined to guarantee that members can access their investments in full, rather than through partial coverage.

“I find it an attempt to take cooperate law and put it in cooperative law or taking banking principals and applying them to Saccos ,” she said

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Muthoni also welcomed the establishment of a Central Liquidity Fund (CLF) for SACCOs. The CLF is designed to act as a mutual liquidity facility, providing emergency loans or short term financial accommodation to SACCOs facing temporary cash flow challenges.

She encouraged SACCOs to adopt innovative approaches to grow their capital, including tapping into climate and green funds, as well as expanding digital service offerings.

SACCOs were urged to diversify loan products to appeal to younger generations and emerging markets, rather than focusing solely on land-based lending.

“People won’t give you credit if you are only lending for land, especially for younger generation is not something interesting,” she said.

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The Cooperative Expo 2026 was organized by the county government of Nairobi in partnership with Credence Africa

Nairobi County deputy governor James Muchiri who attended the Cooperative Expo said the county will continue to offer support to Saccos to improve livelihood of Nairobians.

As of February 2026, the Sacco Societies Regulatory Authority (SASRA) has licensed 176 deposit-taking SACCOs to operate in Kenya, with a high concentration of their head offices and main branches located in Nairobi.

By Obegi Malack

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