The Ministry of Co-operatives and MSMEs Development has lifted the suspension on the registration of new SACCO societies.

In a statement on Wednesday, June 3, Cooperatives Cabinet Secretary Wycliffe Oparanya said the lifting of the suspension follows a review of the legislative and regulatory framework governing the co-operative sector.

“I am pleased to announce that the Ministry of Co-operatives and MSMEs Development, through the Commissioner for Co-operatives, has lifted the suspension on the registration of new SACCO societies with immediate effect.

“This decision follows the successful review of the legislative and regulatory framework governing the co-operative sector by a Committee of Experts appointed by the Ministry,” said CS Oparanya.

The Cooperatives CS noted that registration of new SACCOs will now be subject to enhanced requirements aimed at promoting sustainability, accountability, and good governance.

Applicants will now be required to demonstrate the existence of a fully equipped and accessible physical office with at least one employee.

They should also have a minimum institutional capital of Ksh 1.2 million for formation and initial operations, excluding member deposits.

CS Oparanya mentioned that the applicants will be required to submit a comprehensive three-year business plan and cash flow projections.

Further, the applicants will have to demonstrate the capacity to mobilize at least Ksh 10 million in deposits within the first year of operation and compliance with Sections 4, 5, and 6 of the Co-operative Societies Act and all relevant Regulations.

Additionally, CS Oparanya said all the registration applications should be submitted through the respective County Director for Co-operatives.

“This marks another important step in building stronger, more resilient, and member-driven SACCOs that contribute meaningfully to Kenya’s economic transformation and financial inclusion agenda,” CS Oparanya added.