Govt plans new regulator to protect funds in non-Sacco cooperatives
The government plans to establish a new regulatory authority to safeguard billions of shillings held in non-Sacco cooperatives, amid concerns over weak oversight that has exposed thousands of Kenyans—particularly farmers—to financial losses.
Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya said the proposed regulator will operate within his ministry to enhance accountability and transparency across all cooperative models.
He noted that while the Sacco Societies Regulatory Authority (SASRA) has stabilized deposit-taking Saccos through strict supervision, other cooperatives remain under-regulated and prone to mismanagement.
Oparanya observed that members in sectors such as coffee, cotton and other agricultural value chains continue to lose significant sums due to governance and oversight gaps in non-Sacco cooperatives.
Non-Sacco cooperatives in Kenya are member-owned entities that focus on specific economic activities such as agriculture and housing and do not engage in savings and credit services. Unlike Saccos, which are regulated by SASRA, these cooperatives currently fall under the Commissioner for Cooperative Development.
The Cabinet Secretary said the planned regulator aims to close the oversight loopholes, restore confidence among members and protect investments in cooperative societies across the country.
