NAIROBI, Kenya, May 22 – The government has halted new SACCO registrations for three months to pave the way for sweeping reforms aimed at addressing fraud and weak oversight in the sector.
Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya said the moratorium follows rising cases of exploitation and comes in the wake of a PwC forensic audit that uncovered a Sh13.3 billion loss at the Kenya Union of Savings and Credit Co-operatives (KUSCCO).
The audit cited inflated assets, fake dividends, and misappropriated commissions, prompting a crackdown on regulatory loopholes.
A five-member Committee of Experts, chaired by Marlene Shiels of Scotland’s Capital Credit Union, has been formed to review the SACCO Societies Act (2008) and recommend structural reforms. The review will focus on improving governance, introducing a Deposit Guarantee Fund, and aligning Kenya’s SACCO model with global best practices.
Oparanya said the move is necessary to restore public trust and protect the savings of millions of Kenyans.
