The Sacco Societies Regulatory Authority (SASRA) has called for deeper reforms and stronger oversight to safeguard members’ savings, as the Specified Non‑Withdrawable Deposit‑Taking (NWDT) sector continues to expand.
Speaking during the 1st Regulatory Policy and Legal Roundtables for NWDT SACCOs, SASRA Board Chairman Jack Ranguma said the forum comes at a critical juncture, five years after the category was gazetted in 2020. He noted that the roundtable provides an opportunity to review progress, align ongoing legal and policy reforms, and chart the sector’s future.
By December 2025, the NWDT segment had grown to 172 SACCOs, holding assets worth Sh140 billion and deposits totaling Sh104 billion. Ranguma said while these numbers reflect steady growth, smaller SACCOs remain disadvantaged by limited economies of scale, making it difficult to invest in systems that widen reach while ensuring compliance. He suggested that shared services could help address these challenges.
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Ranguma outlined SASRA’s strategic priorities, including the continued use of risk‑based supervision as a fundamental oversight tool. He explained that this approach enables regulators to identify SACCOs that fail to meet standards and intervene before risks escalate. “Risk‑based supervision makes it easier to monitor institutions that are not consistent with the standards we have put in place,” he said.
To improve transparency and efficiency, SASRA plans to deploy technology‑driven communication platforms that will allow SACCOs to interact seamlessly with the regulator. Ranguma emphasized that reforms must be matched with strong capacity building, urging SACCOs to invest in human resources capable of implementing new frameworks. “The reforms are only as effective as the sector’s capacity to implement them. We encourage SACCOs to strengthen their teams to ensure compliance,” he added.
He welcomed proposed amendments to the Sacco Societies Act, which aim to close regulatory and structural gaps that have delayed the operationalization of the Deposit Guarantee Fund (DGF). Ranguma said the reforms would enhance confidence in the cooperative movement by ensuring members’ deposits are protected.
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The SASRA chair reaffirmed the Authority’s commitment to stability through stakeholder engagement, stressing that every member’s money must remain safe. “Through continuous engagement and effective supervision, the Authority is determined to secure a stable sector where confidence and prosperity thrive,” he concluded.
By Masaki Enock
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