The critical role played by SACCOs in the provision of credit facilities to Kenyans, as well as the mobilization of savings for national development in a safe, sound and secure environment continue to be the main focus of the Authority in discharging its statutory mandate. The Report on Sectoral Financing by SACCOs in Kenya prepared and published by the Authority in 2019 showed among others that 36% of credit facilities granted by SACCOs go towards funding the land and housing sectors of the economy; while 20.5% and 12% respectively go towards the funding of the trade and education sectors respectively.

DT-SACCOs are the single largest providers of formal credit services after the commercial banking sector. Anchored on the simplicity of their lending procedures which are premised on availability of guarantors backed by sufficient back office saving deposits as the main collateral, it is not difficult to see why SACCOs shall continue to be one of the most preferred formal financial service institutions in Kenya.

Gross loans grew by 13% in 2018 is a clear testament of the critical role of DT-SACCOs in the provision of credit facilities to household economies in the country and the total Deposits grew by 11.99% in 2018 is also a pointer to the continued level of trust by members of the public to invest their savings in SACCOs.

Ensuring the maintenance of financial stability and soundness of individual SACCOs have been the building blocks for public trust and confidence in SACCOs. The existence and operations of fraudsters or institutions that style and market themselves to the public, as if they are SACCOs continues to be a matter of great concern to the Authority since the activities of these fraudsters posturing as SACCOs often than not end up irreparably damaging the reputation of genuine SACCO operators in the court of public opinion.

Licensing Status

A total of 176 DT-SACCOs were licensed to operate and undertake deposit-taking Sacco business in Kenya at the commencement of the year 2018. However, two (2) DT-SACCOs, namely M/S Moi University SACCO Society Ltd and M/S Nitunze SACCO Society Ltd had their respective deposit-taking licenses revo  ked in the course of the year 2018, for failing to maintain and meet the minimum statutory and compliance requirements. The two DT-SACCOs were consequently handed over to the Commissioner for Co-operative Development for liquidation in accordance with Section 62 of the Co-operative Societies Act. 


Given the sheer number of SACCOs under the Authority’s jurisdiction, and the remote geographical locations in respect of which some of the SACCOs are located, together with the need to quickly embrace the modern Risk-Based Supervision (RBS) methodology, the National Assembly introduced a new Section 53A of the SSA which allows the Authority to –

  1. Establish an electronic filing system for SACCOs to submit and furnish the periodic reports, returns or other information; and
  2. Issue guideline and directives on the use and procedure for use of the electronic filing system.

These amendments shall thus ease the regulatory burden of SACCOs, by completely eliminating the cumbersome and tedious manual reporting, as well as improve on data credibility and integrity which is vital for a proper functioning of Risk Based Supervision model.

Lastly, DT-SACCOs are required to have senior management staff responsible for key or critical functionalities of its operations including the heads of the internal audit, the ICT, the Credit and the Finance functions among others.


With the exception of a few cases of individual deviances, the DT-SACCOs have largely matured in their level of compliance with prudential standards. It is now time for them to move to the next level in which the financial legal space should be opened to them to provide financial services and products to their members like any other financial institution.

We also see the importance of technology on business operations, especially financial institutions. Communication with customers is facilitated enabling the Saccos interact with their customers quickly and clearly. Technology also helps a business understand its cash flow needs and preserve precious resources such as time.

But, with the advancement of technology comes cyber crimes and we all know technology cannot solve your security problems. We at Salaam make sure you are protected by offering services such as Salaam Assurance as we carry out auditing of your IT governance programs, systems and networks as well as test your security posture through vulnerability assessment and penetration testing.