The Committee of Experts (CoE) is calling for a strategic consolidation of the SACCO sector, arguing that the current fragmentation of societies is undermining economies of scale and weakening supervisory efficiency.
In a move aimed at strengthening the financial stability of the movement, the experts have proposed the development of a formal Sacco Merger Strategy under the Sectoral Policy Standards for Kenya (SPS-K). This framework would provide a clear roadmap for voluntary consolidation, guiding cooperatives through the complex legal, financial, and governance steps required to merge successfully.
The call for mergers comes alongside a strong defense of the delegate system, which some critics had suggested abolishing in favor of direct member participation in Annual General Meetings (AGMs). The CoE, however, maintains that the delegate model—where a smaller group of trained members represents the wider membership—is a cornerstone of the most successful SACCOs in Kenya.
The committee noted that the delegate system ensures order, manageable governance, and representative decision-making as institutions grow. Rather than discarding the model, the experts propose strengthening it to address perceptions that it limits democratic participation. To deepen transparency and accountability, the proposal advocates for the integration of technology-enabled platforms, allowing for digital member engagement alongside traditional in-person meetings.
The CoE has also proposed the establishment of a dedicated SACCO Research and Innovation Centre. This center would be tasked with supporting evidence-based policy, fostering innovation, and helping SACCOs adopt global best practices. The committee suggested that The Co-operative University of Kenya is best positioned to take the lead on this initiative, providing the academic and research rigour necessary to drive the sector forward.
