The Sacco Societies Regulatory Authority (SASRA) has licensed a number of new Savings and Credit Cooperative Societies to operate in Kenya. This moves stamps SASRAs role as a regulatory body to expand the sector while safeguarding members’ contributions in the face of rampant cases of unregistered investment schemes.
SASRA has licensed new deposit taking societies, including Kumbukumbu and Setyon Sacco Society Limited. Three non-withdrawable deposit-taking (Non-WDT) societies have also been approved, including Kenfam Non-WDT and Urban Riads Regulated Non-WGT Sacco Society Limited.
KES 1 Trillion-strong SACCO Sector
Industry assets have surpassed KES 1 trillion with deposits growing by 10.7% by the end of 2024, since most citizens are saving and borrowing more from these societies. However, non-performing loans (NPLs) went up to 6.3 per cent of gross loans, reversing previous improvements.
The regulator has emphasized that only listed societies are supposed to undertake deposit taking while consumers have been cautioned against investing in unregistered investment schemes.
“Only Saccos listed in the gazette are authorized to undertake deposit taking or regulated non-withdrawable deposit-taking business, SASRA mentioned in the gazette notice No. (15383).”
The new approvals come at a time when smaller community-based societies are seeking formal recognition to access cheaper credit, digital payment systems, and linkages with the national credit reference framework.
SASRA is intensifying inspections, member education and enforcing transparency, audited disclosures and prudent standards. The regulator also aims to protect members’ contributions and modernize cooperative financial services.
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