The Ethics and Anti-Corruption Commission (EACC) has completed a comprehensive examination of the management of Kenya’s co-operative sector, identifying governance gaps and recommending reforms aimed at strengthening oversight, accountability and integrity.
The system examination, conducted between February and April 2026, reviewed the systems, policies, procedures, practices and institutional frameworks governing the sector. It covered technical and support functions within the State Department for Co-operatives and its agencies, including the Sacco Societies Regulatory Authority (SASRA), New Kenya Co-operative Creameries Limited (New KCC) and the New Kenya Planters Co-operative Union.
EACC presented its final report to the State Department for Co-operatives, setting out areas requiring attention to reduce vulnerabilities to corruption and improve the management of co-operative resources.
Speaking during the presentation, EACC Commissioner Col. (Rtd) Alfred Mshimba stressed the importance of protecting resources within the co-operative movement, which plays a critical role in Kenya’s economy and the livelihoods of millions of members.
“Every resource safeguarded from corruption is a resource available for investment in housing, education, enterprise, agriculture, and the welfare of Kenyan families,” Mshimba said.
The Commission has urged the State Department to give the findings due consideration and move swiftly to implement the proposed reforms. It also called for continued collaboration between EACC and the Department to strengthen integrity and accountability across the sector.
Principal Secretary for the State Department for Co-operatives Patrick Kilemi welcomed the report, saying the Department was committed to reviewing the findings and implementing the recommendations.
Kilemi reaffirmed the government’s commitment to working with EACC to strengthen governance, enhance accountability and address corruption risks within the co-operative movement.
Among the key recommendations in the report are measures to strengthen governance and accountability mechanisms, improve oversight and internal controls, and address institutional weaknesses that could create opportunities for corruption.
The examination comes at a critical time for Kenya’s co-operative movement, which is undergoing wider regulatory and institutional reforms. With SACCOs and other co-operative societies managing substantial resources belonging to millions of members, the effectiveness of governance systems remains central to protecting members’ savings, investments and other assets.
The EACC findings are therefore likely to generate significant interest across the movement, particularly among SACCO boards, management teams, regulators and members seeking stronger safeguards against financial mismanagement and corruption.
The full implications of the report—and the specific governance weaknesses identified by EACC—could provide important direction for the next phase of reforms in Kenya’s co-operative sector.
Follow Co-op News for an in-depth look at the key findings of the EACC report and what they mean for SACCOs and the wider co-operative movement. Follow @Ushirikanews on Facebook, @Coopnewsmedia on other social media platforms and @Co-optvnews on YouTube.
