The Cabinet has approved amendments to the Sacco Societies Act, 2008 in a bid to enhance the stability, efficiency, and competitiveness of Kenya’s Savings and Credit Cooperatives (SACCOs).
The proposed changes, outlined in the Sacco Societies (Amendment) Bill, 2023, are now before Parliament for deliberation.
According to the cabinet dispatch, the reforms focus on modernizing financial and technological operations within SACCOs, with a particular emphasis on benefiting smaller cooperatives.
Among the key amendments is the introduction of a SACCO Shared Services Framework, which will allow SACCOs to pool resources, integrate financial technology solutions, and enhance collaboration while maintaining their independence.
“Key reforms include a SACCO Shared Services Framework, allowing the financial institutions to pool resources, adopt fintech solutions, and enhance cooperation, while maintaining operational independence.” The statement read.
Additionally, a Central Liquidity Facility will be established to facilitate inter-SACCO transactions, provide short-term lending solutions, and enable SACCOs to participate in the National Payment System.
A centralized data repository is also set to be introduced to improve regulatory oversight and operational efficiency within the cooperative financial sector.
Adding that: “A Central Liquidity Facility will facilitate inter-SACCO transactions, short-term lending, and participation in the National Payment System, while a centralised data repository will improve regulatory oversight and efficiency.”
To further strengthen financial security, reforms to the Deposit Guarantee Fund will ensure better protection of SACCO deposits, reduce government bailout risks, and strengthen the cooperative financial sector.
These reforms position SACCOs as key players in Kenya’s financial inclusion and economic empowerment agenda, by lowering operational costs, fostering innovation, and boosting public confidence.
Meanwhile, the Cabinet sanctioned the National Policy on Women’s Economic Empowerment, a landmark initiative aimed at removing systemic barriers and ensuring women’s full participation in Kenya’s economy, to promote gender equality and economic participation.
Aligned with the Constitution, Vision 2030, and the Bottom-up Economic Transformation Agenda, the policy seeks to bridge gender gaps in financial inclusion, property ownership, skills development, and market access.
Developed through extensive consultations at both national and county levels, the policy establishes a coordinated framework among government ministries, the private sector and civil society organisations to drive women’s economic inclusion.
