The Ministry of Co-operatives and MSMEs Development plans to transform all existing Matatu or PSV SACCOs that are not engaged in savings and credit activities into Transport Cooperatives, also known as Transcoops. “Those that are genuinely involved in savings and credit business will be required to apply for regulation by SASRA; otherwise, they will face deregistration,” stated Cabinet Secretary Wycliffe A. Oparanya.
Speaking during the release of the Sacco Supervision Report 2024 in Nairobi, the CS highlighted that some Transport Cooperatives are currently registered or operating as Matatu or PSV SACCOs despite not qualifying as SACCOs because they do not mobilize deposits or intermediate deposits as credit. “They are simply associations of people who come together to operate transport businesses or manage routes as required by the National Transport Safety Authority (NTSA).”
He emphasized that the continued use of the term “SACCO” by these entities causes confusion, and action must be taken to rectify the situation. “This confusion among the public may lead to reputational damage for SACCOs, which are recognized as regulated and credible financial institutions,” he added.
