NAIROBI, Kenya, July 1 – Members of Parliament have raised concerns over a proposal to cap compensation for SACCO depositors at Sh100,000 if a savings and credit cooperative collapses.
The concerns were raised during deliberations by the National Assembly’s Departmental Committee on Trade, Industry and Cooperatives on the proposed Sacco Societies (Amendment) Bill, 2025.
Lawmakers argued that the proposed limit could leave members with large savings exposed to significant losses and called for a more equitable compensation model.
There have also been proposals to increase the compensation limit to Sh500,000, bringing it in line with the deposit protection available to bank customers.
Appearing before the committee, a team from the Sacco Societies Regulatory Authority (SASRA) led by Chief Executive Officer David Sandagi said the proposed law seeks to strengthen protection of members’ deposits while avoiding regulatory requirements that could increase costs or limit access to affordable credit.
“Members also raised concerns regarding the proposed compensation limit of KSh100,000 per depositor under the deposit insurance framework and called for consideration of a more equitable model,” SASRA said.
The regulator added that the Bill will also allow SACCOs to share technological platforms, enabling smaller institutions to access modern systems, lower compliance costs and benefit from economies of scale.
