Cooperative leaders have convened to deliberate on critical issues of governance, integrity, and the security of cooperative operations, with particular focus on the financial sub-sector.
The meeting placed strong emphasis on transforming cooperatives to make them fit for the future, amid sweeping legislative reforms that could redefine how savings and credit societies operate, compete, and govern themselves over the coming decades.
Kenya’s cooperative movement is quietly navigating one of the most significant turning points in its history. Sector leaders are currently weighing far-reaching reforms that could reshape the identity and structure of SACCOs.
At a high-level forum bringing together Chief Executives and cooperative leaders from dairy unions, agricultural societies, and deposit-taking SACCOs, discussions were reflective and forward-looking.
Convened under the umbrella of the Cooperative Alliance of Kenya (CAK), the forum served as both an annual stocktaking session and a strategic platform to future-proof a sector that controls assets worth trillions of shillings and touches nearly every segment of the economy.
At the centre of the discussions was the proposed Cooperative Bill currently before Parliament, alongside recommendations from a committee of experts appointed last year by Cabinet Secretary Wycliffe Oparanya to review the Sacco Societies Act, 2008.
Leaders noted that the convergence of these two reform processes presents a rare opportunity to modernize the movement, while also raising fundamental questions about control, identity, and the balance between regulation and autonomy.
Speaking during the meeting, CAK Chief Executive Officer Daniel Marube emphasized the need for the sector to define its long-term vision.
“The sector must begin to define what cooperatives should look like over the next 30 years, even as we assess whether current governance structures remain fit for purpose,” he said.
Part of this process includes evaluating proposals to expand regulatory powers, introduce new financial safety mechanisms, and align Kenya’s cooperative terminology with global standards.
One of the most debated proposals is the rebranding of SACCOs as credit unions. While largely seen as a semantic shift, leaders acknowledged that such a move carries symbolic significance in a country where SACCOs are deeply embedded in the financial identity of millions.
Equally significant are proposals to establish a central liquidity facility, a deposit guarantee fund, and a stabilization mechanism.
These tools are aimed at strengthening resilience in a sector that has occasionally faced governance challenges and liquidity pressures. Support for these initiatives remains strong, particularly as SACCOs continue to experience growth in deposits and rising expectations around financial security.
However, leaders were firm that these mechanisms should remain anchored within the cooperative movement itself. While acknowledging the role of government in providing oversight and a stable operating environment, they cautioned against ceding operational control, especially over shared liquidity frameworks—to external entities.
Concerns were also raised over potential regulatory overreach, Provisions that would allow regulators to influence internal matters such as staff lending terms and interest rates that have drawn criticism, with executives warning that excessive intervention could undermine competitiveness and staff motivation.
The prevailing view among sector leaders is that regulators should concentrate on prudential oversight, including financial ratios and stability measures, while leaving day-to-day operational decisions to boards and management.
Technical experts within the movement, however, expressed a more conciliatory stance with Dr Charles Kioko, Chief Executive Officer (CEO) Githunguri Dairy SACCO and a board member of the Transition Board of KUSCCO describing the bill as largely progressive, noting that it addresses key pillars necessary to safeguard a sector that contributes significantly to Kenya’s GDP. He suggested that much of the public criticism stems from misinterpretation rather than substantive shortcomings.
This view was echoed by Solomon Atsiaya, CEO of the Kenya National Police DT SACCO and Chair of the CEOs Caucus who described the proposed liquidity and deposit protection frameworks as long overdue.
He stressed the importance of ensuring that the final legislation reflects the operational realities of SACCOs while balancing government oversight with industry-driven solutions.
As the reform process moves towards public participation, cooperative leaders are positioning themselves as active contributors in shaping the sector’s future.
The outcome will be pivotal in determining whether Kenya’s cooperatives can preserve their foundational principle, people coming together to address shared economic challenges while adapting to the demands of an increasingly complex and regulated financial landscape.
The 3-day Leadership, Ethics & Strategic Governance Forum, scheduled organized by the Cooperative Alliance of Kenya is under the theme “Leading Through Disruption: The Co-operative Sector Strategic Response at Board and Operational Levels,”
The main purpose is to align collective efforts toward strengthening governance, ethical leadership, innovation, and strategic execution in a rapidly evolving economic and regulatory landscape.
The Government has been committing to co-operative modernization, MSME competitiveness, financial inclusion, and equitable economic transformation terming it pivotal to national development aspirations, including implementation of the Bottom-up Economic Transformation Agenda and the 2023 – 2027 Strategic Plan for Co-operatives and MSMEs.
by Wangari Ndirangu
