President William Ruto has said Kenya’s cooperative movement remains one of the country’s strongest economic pillars as SACCO membership approaches 8 million people and sector assets exceed Ksh1 trillion.
Speaking on Saturday, June 13, he said the sector has become a major source of credit for housing, education, business expansion and agricultural investment.
"Kenya today boasts one of the strongest cooperative sectors in Africa. Sacco membership stands at closebto 8 million Kenyans while the sector’s assets have surpassed Ksh1 trillion," he said.
Ruto added that a significant share of SACCO lending is being channelled into productive and social investments, particularly housing and education.
"More importantly, these resources are being invested where they matter most. Of the more than KSh500 billion advanced as credit by regulated saccos, 25% has gone into land acquisition and housing while more than 20% has financed education," he added.
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Ruto framed those figures as evidence that SACCO lending has direct effects on household welfare and economic mobility.
"Behind every one of those loans is a story: A family acquiring a home, a parent paying school fees, a trader expanding a business, and a farmer investing in the next harvest," he noted.
Ruto said the government sees cooperatives as central to the administration’s economic strategy rather than as peripheral financial institutions.
"That is why my administration views cooperatives not as peripheral schemes, but as strategic pillars of national development. The logic of the cooperative movement is the logic of the bottom-up agenda itself," he further said.
This comes a week after the Ministry of Co-operatives and MSMEs Development 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," he said.
Oparanya 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 Ksh1.2 million for formation and initial operations, excluding member deposits.
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 Ksh10 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, 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," he added.
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