In a decisive push to modernize Kenya’s cooperative movement, Cabinet Secretary for Co-operatives and MSME Development, Hon. Dr. Wycliffe Oparanya, has called for a fundamental restructuring of the SACCO sector.
Speaking at the Kenya School of Government in Mombasa during a validation meeting for the Committee of Experts Report, Dr. Oparanya emphasized that the future of these institutions hinges on their willingness to embrace bold, practical reforms.
Central to this vision is a shift toward more robust governance frameworks, including the adoption of the delegate model for larger institutions to enhance representation and streamline decision-making.
The Cabinet Secretary also advocated for strategic mergers, arguing that such consolidations would create more stable, resilient entities capable of navigating an increasingly complex financial landscape.
This momentum for change follows the high-profile presentation of the Committee’s findings to His Excellency President William Ruto at State House on February 16, 2026, marking a critical turning point in the government’s reform agenda.
Dr. Oparanya issued a stern warning against complacency. He noted that the sector must act decisively to address internal weaknesses, asserting that a failure to embrace self-driven reforms today could expose SACCOs to a far more rigid and restrictive regulatory environment in the future. He urged leaders to return to the core mission of the movement—savings and credit—while prioritizing transparency and the absolute protection of members’ funds.
The Cabinet Secretary particularly highlighted the issue of professional integrity, insisting that the cooperative movement must no longer permit “revolving door” misconduct.
He argued that individuals implicated in wrongdoing at one institution should not be allowed to move freely into leadership roles at another. By tightening these loopholes and ensuring a fair balance between the interests of savers and borrowers, he said the sector can rebuild and maintain the public trust.
Echoing these sentiments, Hon. Jack Ranguma, Chairperson of the Sacco Societies Regulatory Authority (SASRA) Board, reaffirmed the regulator’s full support for the proposed roadmap. He noted that the recommendations align seamlessly with SASRA’s strategic goals of safeguarding member deposits and deepening financial inclusion. A key component of this safety net involves ongoing collaboration of SASRA with the Kenya Deposit Insurance Corporation to establish a Deposit Guarantee Fund—a move designed to provide long-term stability to the sector.
The validation meeting brought together key players in the cooperative movement to deliberate on the Committee of Experts Report and build consensus on reforms that will shape the future of Kenya’s SACCO system.
