The Lower Eastern Times Opening The Third Eye
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The government has imposed a three-month freeze on the registration of new Savings and Credit Cooperatives (Saccos) to allow for major reforms aimed at tackling fraud and strengthening oversight in the sector.
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Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya announced the moratorium following an alarming rise in cases of exploitation.
The decision comes after a PwC forensic audit exposed a Sh13.3 billion loss at the Kenya Union of Savings and Credit Co-operatives (KUSCCO).
The audit revealed instances of inflated asset values, fictitious dividends, and misused commissions, leading to calls for urgent regulatory reforms.
To spearhead the reforms, the government has established a five-member Committee of Experts, chaired by Marlene Shiels from Scotland’s Capital Credit Union.
The team will review the SACCO Societies Act (2008) and propose key changes, including enhanced governance standards, the introduction of a Deposit Guarantee Fund, and alignment with international SACCO models.
Oparanya emphasized that the suspension is critical for rebuilding public confidence and safeguarding the financial interests of millions of Kenyan savers.
