The government through will transform all existing Matatu or PSV Saccos, which are not engaged in any Savings and Credit business into ‘Transport Cooperatives.’
However, those genuinely engaged in savings and credit business will be required to apply to be regulated by SASRA, or else face deregistration.
Cooperatives and MSME Development Cabinet Secretary Wycliffe Oparanya said that there were several Transport Cooperatives, which are currently registered or operating as Matatu or PSV Saccoss, yet they are not engaged in mobilization of deposits.
“These matatus are simply an association of people coming together to operate transport business or manage routes as required by the National Transport Safety Authority (NTSA),” he said.
Consequently, Oparanya who was releasing Saccos Supervision Annual Report, 2024, noted that the continued usage of the name “SACCO” by these entities, brings a lot of confusion.
“We must take immediate steps to rectify the situation. It also causes confusion among members of the public and may result in reputational damage to SACCOs as regulated and credible financial institutions,” he said.
The government, the CS noted, is committed to doing what is possible within the prevailing legal framework to protect deposits of members of the public held in regulated saccos,
“As a Ministry, we commit to do what is possible within the prevailing legal framework to protect the deposits of members of the public held in Regulated SACCOs.
But we equally call upon the public to cease and desist from undertaking or transacting SACCO business with unregulated and pyramid-styled entities purporting to be SACCOs when they are not,” Oparanya said.
SASRA has on a continuous annual basis been publishing the list of Regulated SACCOs in the Country both in the Kenya Gazette and the National Newspapers as required by law and has also availed the same on website.
According to the report, there are only 355-Regulated SACCOs consisting of the 177-Deposit-Taking SACCOs and the 178-BOSA-Only SACCOs with deposits above Sh100 million.
In other words, there are many other BOSA-only SACCOs, whose deposits are below the Sh100 million threshold, which are not under the prudential supervision of SASRA and the Ministry is looking into modalities of bringing this segment of SACCOs under SASRA.
Matatu SACCOs manage and regulate individual matatu (minibus) owners, allowing them to pool resources, negotiate better prices for vehicles and fuel, and collectively manage their routes and fares under government oversight.
Prominent examples include Super Metro Sacco, 2NK Sacco, Molo line Sacco and Embassava Sacco, each serving distinct routes across the country.
by Wangari Ndirangu
