NAIROBI, Kenya, Aug 25 – The Cooperative sector is eagerly waiting for the Senate to fast-rack processing of the Draft Cooperatives Bill 2024, to the desk of President Dr William Samoei Ruto for his signature.
The Bill, which was passed by the National Assembly with amendments on December 3rd 2024 has been struck at the Senate, after it underwent the first second and final reading done on November 12th 2025.
The Senate then passed the Bill with amendments and referred the document back to the National Assembly for consideration on February 12th 2025.
Parliament must concur with Senate amendments and then send the Bill to the President. However, the huge resources that the industry possesses, appears to have has also attracted huge vested interests, all keen to control or delay this process.
“There is alot of goodwill from the co-operatives sector about the need for legal and regulatory reforms. At present, we have numerous forums that are disseminating information, most of which are not well-researched, doing the rounds. This industry is huge, with a lot of resources, and therefore attracting the attention of vested interests and groups,” said Joyce Waceke, Mentor SACCO Chief Executive Officer.
She adds that what the sector needs is public participation and alot of understanding and harmony in the industry as well as consultations.
As 2026 draws to a close and with no inter-SACCO lending facility in place following troubles at Kenya Union of Savings and Credit Cooperatives(KUSCCO), financial cooperatives are still locked out of the National Payments System.
“Inter-Sacco lending is a long overdue issue. But once structures are put in place and a central pool identified, SACCOs will be able to access the facility that offers loans at lower rates that what banks are offering and hence make more profits,” said Isedorius Agolla, Chairman of Kenya Association of Front Office Service Activity(KAFOSA), Coast Region.
The New Cooperatives Bill, if enacted into law, seeks to establish a Deposit Guarantee Fund, to compensate members in the event that a financially-troubled SACCO goes under and is liquidated.
“The New Cooperatives Bill that is coming up seeks to address some of the legal challenges and regulatory gaps that allowed losses to occur, as in the case of KUSCOO- which took place over a long period of time without anyone noticing or taking any action. We need a regulatory framework to govern the operations of Secondary Cooperative Societies such as KUSCCO,” said Mrs Ndegwa.
While a sessional paper drawn to trigger a repeal of the outdated Cooperatives Act, Cap 490 has already been published, the document is still stuck in parliament awaiting debate and approval.
