The government has reaffirmed its commitment to strengthening teachers’ SACCOs as part of wider efforts to build a stable, transparent and well-regulated cooperative sector that safeguards members’ savings and supports inclusive economic growth.
Cabinet Secretary for Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development, Wycliffe Oparanya, gave the assurance during a high-level meeting with officials of the Kenya Teachers SACCO Association (KETSA), led by chairman Robert Njue, who paid a courtesy call to the ministry.
The engagement reviewed the performance of the teachers’ SACCO subsector, examined emerging challenges in the cooperative movement and explored ways of enhancing governance, resilience and long-term sustainability.
Teachers’ SACCOs are among the most influential players in Kenya’s cooperative space, mobilizing billions of shillings in savings and providing affordable credit to thousands of educators across the country. Their growth has been anchored on a disciplined savings culture and relatively stable membership, contributing significantly to financial inclusion, household stability and community development.
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However, the meeting acknowledged that SACCOs now operate in a more complex environment shaped by economic pressures, rapid technological change, evolving member expectations and stricter regulatory demands.
Governance was singled out as a critical area, with Oparanya stressing that strong boards, professional management and clear accountability structures are essential to protect members’ funds and uphold confidence in the sector. Weak internal controls, poor risk management and governance lapses were also flagged as key threats that must be addressed decisively.
The discussions also underscored the importance of transparency and full compliance with regulatory requirements. The government pledged continued support for a robust supervisory framework that maintains sector stability while allowing SACCOs to innovate and grow. Timely financial reporting, adherence to prudential standards and effective oversight were cited as central to preserving the integrity and credibility of cooperatives.
Sustainability and competitiveness featured prominently, with teachers’ SACCOs encouraged to diversify their products, invest in technology and strengthen their capital base. Digital transformation was described as both an opportunity and a necessity, enabling SACCOs to improve efficiency, enhance member experience and compete more effectively with other financial service providers.
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The meeting further explored how SACCOs can align more closely with national development priorities by supporting MSMEs, promoting savings and investment and widening access to affordable credit. The ministry reiterated that a vibrant cooperative sector is integral to Kenya’s inclusive growth agenda and the broader vision of shared prosperity.
Oparanya welcomed continued engagement with sector leaders and praised umbrella bodies like KETSA for coordinating member SACCOs, promoting best practices and articulating industry concerns in policy dialogues. He said sustained collaboration between government, regulators, SACCO boards, management and members will be vital in tackling challenges early and unlocking new opportunities..
As Kenya’s cooperative sector navigates a changing economic landscape, engagements of this nature provide reassurance and direction.
With strong leadership, sound governance, and supportive policy, teachers’ SACCOs and the wider cooperative movement are well-positioned to remain resilient, relevant, and impactful in the years ahead
By David Kipkorir
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