12,000 Saccos face axe over missing returns
National
By
Edwin Nyarangi
| May 18, 2026
Cooperatives and MSMEs CS Wycliffe Oparanya before a vetting committee at County Hall, Nairobi. [Elvis Ogina, Standard]
Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya has warned that more than 12,000 savings and credit cooperative societies (Saccos) risk deregistration for failing to submit mandatory financial returns.
Appearing before the Senate plenary, the CS said the move aims to protect millions of Kenyans from fraudsters operating through dormant or non-compliant Saccos.
Oparanya told Senators that only about 2,000 of the more than 14,000 registered Saccos have complied with the legal requirement to file annual returns, raising serious concerns about accountability and operational transparency within the sector. “If you look at the Sacco register, we have about 14,000 societies, yet only a small number of file returns. I have directed the Commissioner for Cooperatives to write to all non-compliant Saccos and demand immediate submission of their returns,” he said.
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He cautioned that many registered entities may exist only on paper and could be exploited by fraudsters to swindle unsuspecting members of the public.
Under the new directive, the ministry will publish in newspapers the names of compliant Saccos that have updated their financial records. Non-compliant societies will be given a 30-day ultimatum to regularise their status or face closure. “We are giving them 30 days to respond. Failure to comply will lead us to conclude that such Saccos are inactive or non-operational,” Oparanya said.
The government will also involve commercial banks in the crackdown to prevent dormant Sacco accounts from being used for fraudulent transactions. Oparanya said the ministry will engage the bankers’ association to ensure accounts linked to deregistered or inactive Saccos are closed.
Investigations, he noted, revealed that unscrupulous individuals have been exploiting weak regulation and inactive societies to defraud Kenyans of their hard-earned savings. “We have people using dubious Saccos to scam wananchi. The measures we are taking are meant to safeguard members’ funds and restore order in the sector,” he said.
The announcement comes amid growing scrutiny of the cooperative movement following cases of mismanagement and financial losses reported in several societies. He emphasised that Saccos remain a cornerstone of Kenya’s economy, mobilising savings and providing affordable credit to millions of Kenyans, including small businesses, farmers and salaried workers.
HE also announced that the government has lifted the suspension on the registration of new Saccos after introducing stricter regulations aimed at improving governance, accountability and financial stability.
Under the revised rules, applicants seeking to register new Saccos must demonstrate adequate capital, sound governance structures and operational viability. Prospective promoters will be required to maintain a bank account holding at least Sh10 million as proof of financial capacity.
Applicants must also develop proper bylaws and submit documentation through county cooperative directors before approval by the Commissioner for Cooperatives. He said ministry officials have been instructed to strictly enforce application procedures to ensure only credible and sustainable institutions are registered.