The Kenyan government has intensified regulatory oversight of the Savings and Credit Cooperative (SACCO) sector, resulting in the suspension of licences for several SACCOs by the Savings and Credit Cooperative Societies Regulatory Authority (SASRA).
In a notice dated February 3, 2026, SASRA announced that five SACCOs operating in Nairobi, Samburu, Kiambu, Marsabit, and Kajiado counties have been placed under “conditionally restricted licences” that will be in force throughout the 2026 licensing period.
The affected SACCOs are allowed only to conduct credit business and are prohibited from receiving new deposits from members or the general public until they meet regulatory requirements.
The regulators have moved in to enforce compliance with the Sacco Societies Act of 2010 and related prudential standards that safeguard governance, capital adequacy, liquidity, and overall financial soundness within the sector.
According to the published SASRA notice, failure to adhere to these regulatory benchmarks has necessitated restrictions aimed at limiting risk to member savings and protecting the integrity of the cooperative system.
SASRA made clear that the restrictions are temporary and conditional on the SACCOs’ ability to demonstrate compliance with statutory requirements.
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One SACCO’s licence was automatically revoked after it ceased operations and merged with another cooperative in 2025, which led to deregistration and liquidation.
Separately, another SACCO lost its licence after failing to apply for renewal before the December 31, 2025 deadline, effectively barring it from conducting any regulated SACCO business.
These enforcement actions come at a time when SASRA has also published lists of SACCOs that are fully licensed for 2026.
A total of 176 SACCO societies were authorised to operate deposit-taking businesses, while another 176 were permitted to engage in non-deposit-taking operations.
SASRA has urged members of the public, particularly savers, to verify the licensing status of SACCOs before depositing funds or engaging in financial transactions, warning that dealing with unlicensed or unauthorised cooperatives carries significant risks.
