Manager of Market Conduct Supervision at the Sacco Societies Regulatory Authority (SASRA), Anne Kago has said the financial and Sacco sector is constantly evolving, and staying ahead of regulatory trends is key to growth and compliance.
Addressing a gathering of Sacco leaders and financial experts, she broke down the latest regulatory shifts shaping the industry, emphasizing the need for strong governance, adaptability, and a proactive approach to compliance in an ever-changing landscape.
Kago’s keynote came at a pivotal moment for Kenya’s Sacco societies and financial institutions, which are facing a wave of new regulations aimed at enhancing transparency, protecting consumers, and ensuring long-term stability.
As the country’s economy demonstrates resilience amid global uncertainties, Saccos—cooperative savings and credit organizations—continue to play a vital role in serving millions of Kenyans, particularly those underserved by traditional banking systems. With this growth, however, comes heightened scrutiny and SASRA’s oversight has intensified to safeguard the sector’s integrity.
A major focus of Kago’s address was the growing importance of governance frameworks. “Good governance is no longer optional; it’s the backbone of sustainable growth,” she declared.
She pointed to recent updates in SASRA’s guidelines, which now require stricter board oversight, enhanced risk management protocols, and regular audits. These measures, she explained, aim to prevent mismanagement and protect Sacco members’ funds.
For many delegates, her words were a call to action to reassess their internal structures and ensure alignment with these elevated standards.
SASRA warns cooperatives of dire consequences for mismanaging funds
Adaptability was another cornerstone of Kago’s message. The financial sector is in constant flux, driven by technological advancements like digital lending platforms and mobile money integration.
Kago urged Sacco leaders to embrace these innovations while remaining vigilant about compliance. “The ability to pivot quickly in response to regulatory changes or market demands will separate the leaders from the laggards,” she said.
She highlighted examples of Saccos that have successfully digitized their operations, improving efficiency and member services while meeting data protection and cybersecurity requirements.
At the heart of Kago’s speech was a strong push for proactive compliance. With SASRA introducing updated policies in 2025—such as stricter capital adequacy requirements and enhanced reporting obligations—Sacco managers face a steeper learning curve.
“Waiting for enforcement actions is a costly mistake,” Kago cautioned, referencing past instances where non-compliance resulted in significant fines or license revocations. She advocated for continuous training, collaboration with regulators, and investment in compliance infrastructure to stay ahead of the curve.
The 2025 Delegates Induction, attended by hundreds of Sacco leaders and financial professionals, provided a forum for in-depth discussions on these topics. Workshops and breakout sessions allowed participants to explore the practical implications of Kago’s insights.
Kago also emphasized SASRA’s dual role in fostering both regulation and growth. Alongside stricter enforcement, the authority has launched initiatives like technical assistance programs and streamlined licensing processes for smaller Saccos. This balanced approach seeks to create a competitive yet stable sector capable of weathering economic challenges.
As Kenya’s financial and Sacco landscape continues to transform, Anne Kago’s address serves as both a challenge and an opportunity.
For Sacco leaders, the way forward hinges on embracing governance, adapting to change, and prioritizing compliance. By doing so, they can position their institutions not only to survive but to lead in an increasingly complex and competitive industry.
By David Kipkorir
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