The National Assembly has published an official explainer defending the Sacco Societies (Amendment) Bill, 2025, urging Kenyans to judge the proposed law on its actual provisions rather than what it called false information circulating online.
Published as a notice in The Star and signed by Clerk of the National Assembly S. Njoroge, the explainer says the Bill — gazetted on 30 June 2025 and read for the first time on 1 April 2026 — is still before the Departmental Committee on Trade, Industry and Cooperatives for public participation. If passed, it will proceed to the Senate.
Parliament said the reforms respond to nine long-standing problems in the sector, including unregulated pyramid schemes, weak governance of umbrella Saccos, absent capital and licensing rules, poor inter-Sacco payment systems, and a Deposit Guarantee Fund that has never paid out since its creation nearly two decades ago.
The Bill’s centrepiece is a new “secondary Sacco” category, which at least 30 primary Saccos may voluntarily form. Parliament stressed that joining is not compulsory — member Saccos must approve it at a general meeting. Secondary Saccos would face full licensing and supervision by SASRA, including capital and liquidity rules and vetting of directors, and would be barred from taking deposits or lending to individuals, trading, or investing in venture capital. Their role would be limited to pooled liquidity support, shared payment platforms, and — subject to Central Bank approval — interbank market access.
Separately, the Bill restructures the Deposit Guarantee Fund’s Board of Trustees and clarifies how members can claim protected deposits once a Sacco’s licence is revoked.
Parliament’s notice appeals for the public to rely on the Bill’s actual text, made available at the National Assembly’s Table Office and website, rather than online misinformation.
