Sacco Review | The Leading Newspaper for Co-operative Movement in Kenya
The Leading Newspaper for Co-operative Movement in Kenya
The Kenya Union of Savings and Credit Co-operatives (KUSCCO) is set to auction properties to recover Ksh1.36 billion in unpaid loans from SACCOs that secured funding against deposits worth Ksh368 million leaving a massive shortfall of nearly Ksh988 million. KUSCCO has since issued demand letters requiring defaulting SACCOs to submit payment or a formal repayment…
The legitimacy of two key cooperative sector funds has come under parliamentary scrutiny, with Members of Parliament (MPs) demanding urgent reforms and full disclosure from the State Department for Co-operatives. The Special Funds Accounts Committee, chaired by Migori MP Fatuma Zainab, has directed the department to submit all outstanding audit documents to the Office of…
Savings and Credit Cooperative Societies (SACCOs) are being challenged to tighten their systems and take insurance covers on the back of rising cyber-attacks in the era of digital transactions. Cooperatives are increasingly gaining prominence among formal and informal workers and currently hold over Sh800 billion customer deposit—a sum that makes them a target of cyber…
In recent times, rumors have swirled around how some Savings and Credit Cooperatives (Saccos) have been hit by a run, and while it might be true that some Saccos might have issues, it is not true that these financial institutions as a vehicle for lending and saving are on trial. True, like a savings instrument,…
Despite rapid advancements in digital banking, Kenya’s Savings and Credit Cooperative Societies (SACCOs) continue to prioritize opening brick-and-mortar branches—especially in rural areas where a significant number of their members, such as peasant farmers, reside. Annual reports for the year ending December 31, 2024 and outlooks for 2025 reveal that several dynamic deposit-taking SACCOs plan to…
The Sacco Societies Regulatory Authority (SASRA) has expressed concern that, despite the immense value of credit scoring, SACCOs have been slow to fully adopt credit referencing, resulting in gaps in credit decision-making. The regulator also highlights challenges in implementing effective credit-scoring systems, which have hindered responsible lending and undermined long-term financial stability. However, some senior…
A move by commercial banks to cut their lending rates after intense pressure from monetary authorities, is attracting the attention of many financial services users. Do these latest cuts in the price of bank loans pose any threat to SACCOs, considered a serious player in the lending business and Kenya’s financial sector? “This trend to lower…
Housing Co-operatives, SACCOs as well as Investment units of these Societies appear to have given the state-run affordable housing program a wide berth. A spot check of various players in the Housing Cooperatives Segment reveals lack of interest in the program by most while others cite numerous bottlenecks. Savings and credit co-operatives (SACCOs) Top Executives…
SACCOs have been urged to embrace prudential regulatory frameworks by working closely with African Confederation of Cooperative Savings and Credit Associations (ACCOSCA) and Policymakers to strengthen SACCOs Regulation for financial stability and also unlock their full potential as engines of inclusive economic transformation in Africa. This was arrived at during the official close of the…
All Savings and Credit Cooperative Organizations (SACCOs) with membership exceeding 10,000 have been directed to implement a delegate system of representation within six months. The directive forms part of broader set suggestions intended to regulate the sector. The Ministry of Cooperatives and MSMEs Development, under the leadership of Cabinet Secretary Wycliffe Oparanya, observed that SACCOs…
