The Government has assured Kenyans that significant steps have been taken to address the irregularities at the Kenya Union of Savings and Credit Cooperatives (KUSCCO), promising that those responsible will face the full force of the law.
Speaking at the KUSCCO’s Headquarters in Nairobi, the Cabinet Secretary (CS) for Co-operatives and Micro, Small, and Medium Enterprises (MSMEs) Development, Wycliffe Oparanya, confirmed that investigative agencies had completed their work and shared their findings with relevant authorities.
“We are assured that significant steps have been taken by the investigative agencies whose outcomes have been shared with relevant agencies to commence necessary legal and administrative action, support litigation pertaining to criminal and economic crimes culpability, and facilitate the process of asset recovery,” he highlighted.
According to Oparanya, the release of a Forensic Audit Report by PricewaterhouseCoopers (PwC) has been a crucial milestone in restoring credibility to the SACCO industry, citing the Report which reaffirms the Ministry’s commitment to transparency and accountability.
“We are pleased to indicate that this confirms the commitment of the Ministry, to remain open and transparent in its efforts to promote and ensure a vibrant SACCO industry in Kenya,” he reiterated.
The CS further commended the Interim Board of KUSCCO for successfully completing its mandate, highlighting key achievements such as overseeing the completion and implementation of a Statutory and Forensic Audit, reconstruction of books and accounts to reflect the true financial status of KUSCCO, development and implementation of a recovery strategy, and amendment of union bylaws to align with the recovery strategy.
Additionally, the CS disclosed that the government has directed the formation of a new nine-member Board, with a three-year mandate to oversee the revival of KUSCCO and restore confidence in SACCOs, as secure investment platforms at the grassroots level.
In a major policy shift, Oparanya revealed that the Cabinet, on Tuesday, March 11, 2025, approved amendments to the SACCO Societies Act, 2008, under the SACCO Societies (Amendment) Bill, 2023.
He added that the proposed reforms seek to modernise SACCO operations by introducing a SACCO shared services framework to enhance efficiency, establishing a central liquidity facility to enable SACCOs to conduct inter-SACCO transactions, access to short-term loans, and participation in the National Payment System.
“To further refine these regulatory changes, the government will appoint a Committee of Experts to review the SACCO Societies Act and associated regulations,” remarked the CS.
Further, Dr. Oparanya hinted that the government will redefine KUSCCO’s mandate, with a special focus on the Central Finance Fund (CFF).
“The SACCO Liquidity Fund (SLF), formerly known as CFF, “will now function as a secondary cooperative under the SACCO Society Regulatory Authority (SASRA) regulation,” he explained, adding that it will operate independently, with its own Board and Chief Executive Officer (CEO), ensuring a structured approach to the recovery and refund process for SACCOs’ owed funds.
Consequently, the CS emphasised that the measures, along with the recently launched Ministry of Co-operative and MSMEs Development Strategic Plan, will greatly benefit SACCO members across the country.
“Our actions are aimed at ensuring better protection of SACCO deposits, minimising government bailout risks, and strengthening the cooperative financial sector,” he stated, maintaining that Co-operatives and SACCOs are the best economic model to empower the people.
The CS at the same time urged Kenyans to seize the opportunities presented by the 2025 International Year of Co-operatives, declared by the UN to showcase their positive impact in their communities.
He expressed his Ministry’s confidence that the cooperative movement will not only recover but also grow stronger, benefiting millions of members.
Echoing these sentiments was his counterpart, the Cabinet Secretary (CS) for Youth Affairs, Creative Economy, and Sports, Salim Mvurya, who reiterated the government’s commitment to improving the livelihoods of vulnerable youth across the country, including those who are unemployed, underemployed, or in low-tier jobs, through the Bottom-Up Economic Transformation Agenda (BETA).
Mvurya announced that the two Ministries will work closely in the rollout modalities, including the selection process, mentorship and skills development, and ultimately, onboarding beneficiaries into employment opportunities.
The CS asked for good governance for the financial cooperatives to keep trust by Kenyans who are savers and have been excluded from accessing credit facilities.
“With these bold steps, the government seeks to rebuild trust in SACCOs, ensuring that members’ savings are safeguarded and that cooperative institutions remain reliable pillars of financial inclusion in Kenya,” he assured.
By Clinton Ng’iela
