The Savings and Credit Cooperative Societies Regulatory Authority (SASRA) has moved to restrict the licences of several Savings and Credit Cooperative Societies (SACCOs), a decisive enforcement action designed to tighten compliance in the SACCO sector and safeguard members’ deposits.
The notice issued on February 3, 2026 places licensing restrictions on five SACCOs and follows broader oversight measures aimed at strengthening governance in one of Kenya’s most critical grassroots financial segments.
Under the regulatory action, five SACCOs based in Nairobi, Samburu, Kiambu, Marsabit and Kajiado have been issued “Conditionally Restricted Licences” for the period January 1 to December 31, 2026, limiting them strictly to credit-only operations and prohibiting them from taking new deposits from members or the public.
The five SACCOs placed under restricted licences are:
- Dumisha SACCO Society Ltd — Samburu County
- Bi-High SACCO Society Ltd — Marsabit County
- Metropolitan National SACCO Society Ltd — Kiambu County
- Ol’Kaunsel Regulated Non-WDT SACCO Society Ltd — Kajiado County
- Digital Media Regulated Non-WDT SACCO Society Ltd — Nairobi County
The suspension of deposit-taking privileges reflects concerns about compliance with prudential standards under the Sacco Societies Act, 2010 and its implementing regulations, which require licensed SACCOs to maintain adequate capital, liquidity and governance frameworks.
In addition to the restricted licences, the regulator revoked the licence of another SACCO that failed to apply for renewal by December 31, 2025, effectively barring it from conducting any regulated SACCO business. Separately, one entity was listed as having voluntarily ceased operations after merging with another regulated SACCO in 2025, leading to the automatic expiry and revocation of its licence.
SACCOs play a central role in Kenya’s financial ecosystem, especially for low- and middle-income savers and borrowers who depend on these cooperatives for credit, savings mobilization and financial inclusion.
Industry data show that hundreds of SACCOs are licensed annually, with about 176 deposit-taking and another 176 non-deposit-taking societies authorised to operate in 2026.
However, weak governance, liquidity shortfalls and operational lapses have periodically prompted regulatory action to avert risks such as mismanagement, capital inadequacy or insolvency that could compromise members’ savings.
SASRA Chief Executive Officer David Sandagi reiterated that the regulator’s priority is to protect members’ funds and maintain confidence in the cooperative movement, warning the public against transacting with unlicensed or unauthorised SACCOs at their own risk.
He also urged employers and institutions to stop facilitating unlawful SACCO activities through payroll deductions and digital remittances that benefit unregulated entities, which could expose contributors to financial loss.
“The action we are taking ensures that only those SACCOs that have met the legal and prudential requirements are permitted to mobilise and safeguard members’ deposits,” Sandagi said in the notice, adding that regulated societies are required to display their licence certificates visibly at their headquarters and branches.
The regulatory crackdown also comes amid a tightening compliance calendar: SASRA had recently given SACCOs a deadline of March 15, 2026 to submit audited financial statements for the year, a requirement designed to improve transparency, financial discipline and risk oversight before Annual General Meetings are held.
These compliance benchmarks form part of a broader effort to align Kenya’s SACCO sector with global best practices in cooperative financial governance and depositor protection.
Industry analysts say the enforcement push could reinforce trust in the sector by weeding out weak or non-compliant SACCOs, but also caution that restricted access to deposit-taking services may temporarily disrupt members’ financial planning if remedial actions are not implemented quickly.
Investors and depositors are advised to check a SACCO’s licensing status on the SASRA website or through official gazette notices before committing savings, a practice underscored by regulators as essential for financial safety.
