Cooperative Finance
The National Assembly has opened a public participation window on the Sacco Societies (Amendment) Bill (National Assembly Bill No. 32 of 2025), inviting Kenyans and stakeholders to submit memoranda to the Departmental Committee on Trade, Industry and Cooperatives before the end of the month.
Sponsored by the Leader of the Majority Party, the bill seeks to amend the Sacco Societies Act, Cap. 490B, introducing significant structural changes to how savings and credit cooperative societies operate in Kenya — a sector that touches millions of households across the country.
At the heart of the bill is a proposal to establish secondary Sacco societies — apex bodies that would oversee central liquidity and shared services among primary Saccos. Proponents argue this would strengthen the financial resilience of individual Saccos by giving them access to a common liquidity pool, reducing the risk of collapse during periods of high withdrawal demand.
Parliament seeks public views on Sacco reform bill that could reshape Kenya’s cooperative finance sector
The Sacco Societies (Amendment) Bill, 2025, proposes sweeping changes, including the creation of secondary Saccos and a revamped Deposit Guarantee Fund. Kenyans have until April 24 to weigh in.
The bill also addresses longstanding concerns about the Deposit Guarantee Fund, which has existed in law but is yet to be fully operationalised. The amendments would provide the legal scaffolding needed to activate the fund, offering a safety net for members whose savings could be at risk if a Sacco faces financial distress. Notably, the bill proposes aligning the appointment of the Board of Trustees of the Fund with international best practices — a signal of growing maturity in Kenya’s cooperative financial architecture.
Kenya’s Sacco sector is among the largest in Africa, with hundreds of licensed deposit-taking Saccos serving millions of members, particularly civil servants, teachers, and farmers. Any legislative changes to their governance framework are closely watched by regulators and the public alike.
The notice was issued by S. Njoroge, CBS, Clerk of the National Assembly, on 10th April 2026, in compliance with Article 118(1)(b) of the Constitution and National Assembly Standing Order 127(3).
Deadline: Friday, 24 April 2026 at 5:00 p.m.
Memoranda may be submitted by post to the Clerk of the National Assembly, P.O. Box 41842-00100, Nairobi; hand-delivered to the Office of the Clerk, Main Parliament Building; or emailed to [email protected]. Copies of the bill are available at the National Assembly Table Office and at parliament.go.ke.
