SASRA’s oversight on saccos put to question amid revelations 25,000 are non-compliant
The efficiency and effectiveness of the Sacco Society Regulatory Authority (SASRA), the saccos regulator in reining over rogue sacco managers involved in shadowy dealings including cooking books of accounts has been put to question after it emerged that over 25,000 saccos are non-compliant and face deregistration.
In shocking revelations, records at the State Department for Cooperatives show that majority of the saccos failed to hold annual general meetings (AGMs) and continued to conceal their financial dealings from members.
They now face closure over failure to file audited financial statements placing over Sh1.2trillion in members’ deposits at risk.
Records show that only a marginal less than 5,000 saccos are compliant with statutory reporting requirements.
Principal Secretary Patrick Kilemi is reportedly said many non-compliant societies have ignored repeated government notices, failed to hold annual general meetings (AGMs), and continued to conceal their financial dealings from members.
He further warned that the government is preparing to cancel the registration certificates of societies that persistently breach the governing law.
Failure to submit audited accounts within four months after the end of a financial year contravenes the Cooperative Societies Act, which allows for immediate deregistration of societies that fail to file returns for three consecutive years.
The law also strips management committee members of office where audits are delayed, barring them from seeking re-election for three years.
The crackdown follows declining compliance, with audited submissions falling to 4,062 in the year ended June 2025, even as sector deposits rose to Sh1.224 trillion.
Authorities say weak governance has exposed members to losses, citing scandals at KUSCCO, Ekeza Sacco and Metropolitan Sacco.
Earlier, the government had ordered large saccos to adopt delegate-based AGMs and warned officials against holding illegal meetings.
Meanwhile, it was reported in June that 58 saccos in Kenya risked being auctioned after defaulting on loans they took from the Kenya Union of Savings and Credit Cooperatives.
The saccos had taken loans amounting to Sh1billion from the union over the last 20 years. Due to recent fraud cases and efforts to revive KUSCCO, the government is taking measures to ensure that the defaulting SACCOs repay their loans.
The Commissioner of Cooperative Development, David Obonyo, wrote to the affected SACCOs asking them to meet their loan obligations. The affected SACCOs cited then were: Kencom SACCO (Sh377.5 million), Nacico SACCO and its sister entity Nacico Investment Coop (Sh358.01 million), among others. KUSCCO recently came into the spotlight after an audit report exposed a Ksh 13 billion scandal involving key officials of the union.
