By Kimuri Mwangi
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 underscored the urgency of transforming cooperatives to remain relevant 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 navigating a pivotal moment, with sector leaders 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 took on a reflective yet forward-looking tone.
Convened by the Cooperative Alliance of Kenya (CAK), the forum doubled as an annual stocktaking exercise and a strategic platform aimed at future-proofing a sector that controls assets worth trillions of shillings and spans nearly every segment of the economy.
Central to the deliberations 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 observed that the convergence of the two reform processes presents a rare opportunity to modernize the movement, while also raising fundamental questions around control, identity, and the balance between regulation and autonomy.
Speaking during the meeting, CAK Chief Executive Officer Daniel Marube emphasized the need for a clear 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 the reform agenda includes proposals to expand regulatory powers, introduce new financial safety mechanisms, and align Kenya’s cooperative terminology with global standards.
Among the most debated proposals is the rebranding of SACCOs as credit unions. While largely viewed as a semantic shift, leaders acknowledged the symbolic weight such a move carries 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 aimed at strengthening resilience in a sector that has at times faced governance challenges and liquidity pressures. Support for these initiatives remains strong, particularly as SACCOs record growth in deposits alongside rising expectations around financial security.
However, leaders insisted that such mechanisms should remain anchored within the cooperative movement. While recognizing the government’s role in oversight and ensuring a stable operating environment, they cautioned against ceding operational control, particularly 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 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 focus 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 adopted a more conciliatory stance, with Dr. Charles Kioko, CEO of Githunguri Dairy SACCO and a board member of the Transition Board of KUSCCO, describing the bill as largely progressive and 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 position 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 need to ensure that the final legislation reflects the operational realities of SACCOs while balancing government oversight with industry-driven solutions.
As the reform process moves toward public participation, cooperative leaders are positioning themselves as active contributors in shaping the sector’s future.
The outcome is expected to 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 three-day Leadership, Ethics and Strategic Governance Forum, organized by the Cooperative Alliance of Kenya under the theme “Leading Through Disruption: The Co-operative Sector Strategic Response at Board and Operational Levels,” aims to align collective efforts toward strengthening governance, ethical leadership, innovation, and strategic execution in a rapidly evolving economic and regulatory environment.
