Oparanya suspends Saccos registration pending review

The government has suspended registration of new Saccos pending recommendations from a five-member expert committee tasked with reviewing the sector.

Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya announced the moratorium on Wednesday during the inauguration of the committee, as well as the new board of the troubled Kenya Union of Savings and Credit Cooperatives (Kuscco).

The review team, chaired by Marlene Shiels, CEO of Capital Credit Union (Scotland), has three months to present comprehensive, actionable reforms.

CS Oparanya said the suspension is aimed at giving the committee space to scrutinise existing regulations.

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“The government has decided to suspend registration of any Sacco until we receive recommendations from the experts, which will help strengthen the sector,” he said.

He declined to disclose how many applications were pending, noting the data was with the Commissioner of Cooperatives.

“I can’t say how many have reached here; registration starts at the county level and is a continuous process.”

Oparanya cited Kenya’s relatively lenient registration criteria—only 10 members are required—as a possible area for reform.