Kenya’s Savings and Credit Cooperative (SACCO) movement has reached what many leaders are calling a historic inflection point. In a landmark ceremony at State House Nairobi, a high-level Committee of Experts formally submitted its Report on the Transformation of the SACCO System in Kenya to H.E. William Samoei Ruto, President of the Republic of Kenya and Commander-in-Chief of the Kenya Defence Forces. The submission marks the culmination of months of intensive review and stakeholder engagement aimed at strengthening the legislative, governance and operational framework of SACCOs in Kenya—institutions that serve millions of wananchi and anchor the country’s cooperative-driven development
The Committee of Experts, chaired by Ms. Marlene Shiels (OBE, AADE, I-CUDE), was appointed in April 2025 by the Government of Kenya through Hon. Wycliffe A. Oparanya, Cabinet Secretary in the Ministry of Cooperatives and MSMEs Development-Kenya. The Committee was tasked with reviewing the SACCO Societies Act and proposing reforms to align the law with emerging trends, technological advancements, governance demands, and the increasingly complex risk landscape facing deposit-taking and non-deposit-taking SACCOs. In receiving the report, President Ruto described the moment as a significant milestone in the transformation of the SACCO movement—an acknowledgment of the central role cooperatives play in Kenya’s socio-economic architecture. With SACCOs mobilizing billions in savings and financing housing, education, agribusiness, MSMEs and public service development, the stakes for reform could not be higher.
At the core of the reform agenda is harmonization—an effort to streamline regulation, enhance governance standards, and improve operational efficiency across the SACCO ecosystem. This harmonization closely aligns with the continental integration vision championed by the African Confederation of Cooperative Savings and Credit Associations (ACCOSCA), whose Executive Director, George Ombado, was among the distinguished leaders present during the submission. ACCOSCA’s strategy promotes standardization, cross-border learning, professional certification, and integration among credit unions across Africa. Kenya’s reform process is therefore not only a domestic policy shift but also a continental signal—positioning the country as a pace-setter in cooperative governance. The proposed reforms are expected to address:
Strengthened prudential oversight • Enhanced board and management accountability • Adoption of digital financial services frameworks • Risk-based supervision mechanisms • Capital adequacy and liquidity safeguards • Greater protection of member savings. The overarching objective: build resilient SACCOs capable of withstanding economic shocks while scaling impact. The event brought together a cross-section of Kenya’s cooperative leadership. Present were Hon. Patrick Kilemi, Principal Secretary in the State Department for Cooperatives; David Obonyo, Commissioner of Cooperatives; David Mategwa, National Chairperson of Kenya Union of Savings and Credit Cooperatives Ltd (KUSCCO Ltd); and CPA David Amiani Sandagi, Acting CEO of the Sacco Societies Regulatory Authority (SASRA). The presence of these leaders underscored a unified message: reform is not optional—it is essential. The Committee brought together global and local expertise in cooperative finance, governance, regulation and credit union development. • Marlene Shiels (Scotland) – Committee Chairperson • Mr. Maurice Smith (USA) – US Supreme Court Bar Member and former CEO of the Local Government Federal Credit Union and Civic Federal Credit Union • Dr. (h.c.) Nelson Kuria (Kenya) – Group Chairperson of CIC Group PLC • Mr. Odhiambo Collins Harrison (Kenya) – Advocate of the High Court.
Dr. Gamaliel Hassan (Kenya) – CEO of Stima Sacco Society Limited The blend of international credit union expertise and Kenyan institutional leadership ensured the recommendations were both globally benchmarked and locally grounded. Kenya boasts one of the most vibrant SACCO sectors in Africa, contributing significantly to f inancial inclusion. Institutions such as Kenya National Police DT SACCO and Stima Sacco have demonstrated how well-governed cooperatives can deliver scale, innovation and member value. Yet the sector also faces mounting pressures: • Rapid digitization and fintech disruption • Governance lapses in some institutions • Liquidity and credit risk exposure • Increased regulatory expectations • Growing member demand for diversified financial products Repositioning SACCOs through legislative reform aims to future proof the sector—ensuring that cooperative finance remains a pillar of Kenya’s Bottom-Up Economic Transformation Agenda. The submission of the report at State House elevates SACCO reform to the highest policy platform in the land. It signals that cooperative f inance is not peripheral—it is central to Kenya’s national development strategy. Moreover, the harmonization agenda aligns with broader African aspirations for integrated financial systems that empower citizens at the grassroots. By strengthening its SACCO framework, Kenya reinforces its leadership role within ACCOSCA and sets a benchmark for other African nations pursuing cooperative modernization.
The submission of the report marks the end of one phase—and the beginning of another. The next steps will likely include: • Policy review and stakeholder validation • Legislative amendment processes • Institutional capacity building • Transitional compliance frameworks • Public awareness and member education For millions of SACCO members across the country, the reforms promise stronger protection, better governance and more sustainable growth. For the cooperative movement, this is more than a policy review—it is a defining moment. As the ethos of the movement reminds us: People Helping People. And on 11 February 2026 at State House Nairobi, that principle took a decisive step into Kenya’s future
