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News & Press Releases

The Authority has today 7th December, 2019 released the SACCO Subsector Demographics Study Report, 2019. The report unpacks the age distribution and gender composition of the members of deposit-taking SACCOs in Kenya. 

The Report (available in Publications under the Resources menu on this website) was officially released by the Principal Secretary, State Department of Co-operatives, who represented the Cabinet Secretary, Ministry of Industry, Trade and Co-operatives Hon. Mr. Peter Munya during the Annual Policy & Regulatory Workshop at the Whitesands Hotel, Mombasa



1.     The attention of the Sacco Societies Regulatory Authority (SASRA) is drawn to the contents of a recently published report dubbed, ‘A Technical Solution to a Political Economy Problem: FSD Kenya’s Intervention in the SACCO Sector,’ by FSD Africa. This report published in February 2017 draws substantially from a Sacco subsector analysis done on behalf of FSD Kenya in 2014 by A2F Consulting and completed in March 2015 with contentious findings which could not be published. SASRA wishes to assure the Sacco members and the public in general that the Sacco subsector is in sound financial state.

2.   The simplicity of the Kenya Sacco model has made the Saccos popular across all households regardless of social-economic status. This situation has been attained in spite of fairly developed Kenyan financial sector. The publication portrayed the Kenya Sacco model as high risk and fundamentally flawed thereby putting to risk member deposits. These inaccurate conclusions ignored the success registered by hundreds of Saccos that have continued to provide much needed financial services to Kenyan citizens. The few incidences of Sacco failures cannot therefore be attributed to the operating model but more to mismanagement. 

3.    The growth and development of the Front Office Services Activity (FOSA) which offers quasi banking services is a testimony that the Saccos are responsive to member and market demands. In its wisdom, the Government responded to this development by introducing the prudential regulatory framework to enhance sound management practices and safety of member deposits. The Government’s choice to have a dedicated regulator for the Sacco sector was deliberate to avoid disrupting the Sacco model and potentially reversing or losing the gains made in deepening financial inclusion through the Saccos.

4.   Evidently, the new regulatory framework marked a new beginning for a sector that had operated without clear, non-ambiguous financial and operating standards for nearly half a century. It is therefore unrealistic to expect immediate change in governance practices in under five years, i.e 2011 to 2013. Recognizing this challenge, the drafters of the Sacco Societies Act and Regulations provided four years transition period within which SASRA was to license all eligible Saccos that were operating FOSAs at the commencement of this law which was June 2010.

5.     As at December 2016, the 175 Saccos licensed and regulated by SASRA had a combined net assets of Ksh.393billion based on the unaudited financial statements, up from Ksh.301 billion in 2014. This growth is funded by deposits, share capital and retained earnings.   Capital a key measure of financial health of a Sacco grew by over 50 per cent from Ksh.33 billion in 2014 to Ksh.58 billion by close of December 2016. The 175 Saccos were serving a reported figure of 3,456, 975 members.  Below is a table of the performance trend over the last three years.


  2016* 2015 2014
Number of DTS 175 176


Membership 3,456,975 3,145,565


FINANCIALS (KShs. Million) (KShs. Million) (KShs. Million)
Total Assets 393,136 342,848


Total Deposits 272,749 237,440


Net Loans & Advances 282,733 251,080


Capital Reserves 67,555 50,856


Core Capital

58,174 41,712




6.  The regulatory framework provides prudential standards against which the financial health of a Saccos is assessed on a continuous basis using periodical reports submitted to SASRA for this purpose. Besides, SASRA can and does ask for additional quantitative and qualitative information to supplement the period returns. 

      In aggregate terms, the key prudential standards including capital adequacy, quality of loan assets and liquidity are satisfactory indicating that the Sacco subsector is financially healthy, courtesy of the reforms commenced in 2010 when the new Sacco Societies Act of 2008 commenced.  Below is a table of the key financial soundness indicators from 2014 to 2016.




7.  Recognizing that non-compliance by individual Saccos is non-avoidable, the legal framework has provided mechanism of dealing with such to enforce compliance. This includes issuance of administrative directives, conditional license or revoking of license all together. Licensing decisions are communicated to the public through notices in the local dailies at the beginning of the year and as necessary. Further detailed report on performance of the deposit taking Saccos is published annual and can be found at www.sasra.go.ke


8.       The diversity of Kenya deposit taking market provides Kenyans with the choice of different institutions to meet their financial needs in terms of payment services, savings and credit. It is indeed Government policy to preserve this diversity while instituting appropriate regulations to enhance competition in a sustainable manner. Thus having Sacco members also access banking services does not imply they do not need a Sacco. It is noteworthy that the largest deposit taking Saccos trace their original membership from public servants, majority of whom have bank accounts. The two financial service providers are complementary and assist the households to deal with diverse financial needs.


9.    The importance of Saccos to households in Kenya has been variously confirmed by independent reports including the Finaccess household surveys undertaken jointly by Central Bank of Kenya, Kenya National of Bureau of Statistics and FSD Kenya. The 2016 Survey in particular indicated that amongst the formal financial service providers, Saccos are fairly popular with households for not only credit but also in Savings. See tables 10a and 10b below are extracts from the 2016 Finaccess Household Survey.


SASRA, in keeping with the dynamism of the deposit taking Saccos is committed to working on policies to mitigate identified challenges in order to ensure sustained growth of deposit taking Saccos and . The regulatory reforms is a process especially for an industry that was hitherto not under stringent legal framework. SASRA will continue to engage with the Sacco industry, other Government agencies and development partners to sustain the reform momentum.


10.  SASRA is thus pleased with significant growth made by the Saccos under its regulatory mandate and wishes to assure the Kenyan public that the Sacco subsector has shown considerable level of stability and that we remain committed to effective regulation of the sector and protection of public interest in order to maintain confidence in the use of Sacco services accross the country.



John Mwaka



Date: 24th February, 2017







October 28, 2016….. new online complaints portal for the general public, Sacco members and saccos to be able to manage complaints is in place.


The portal, being introduced as part of ongoing improvements to SASRA services to Sacco members and the general public and will allow SASRA to view complaint details, share information with aggrieved Saccos, confirm resolutions; and access decisions on complaints.


The public and Sacco members will be able to manage their complaint through the portal, enabling them to keep track of what stage the complaint is at. The portal is one of the business transformation initiatives being rolled out by SASRA to help it ensure satisfaction levels of its stakeholders are well managed. In addition, it should help the Authority improve its data reporting and analysis while reducing the number of cases that may be due to miscommunication or non-adherence to business processes by Saccos.


Acting Chief Executive Officer, John Mwaka, said: “We are constantly looking at ways in which we can make our service as efficient as possible. The portal is one of the key innovations we’re making to achieve this goal.”


The portal is expected to benefit the general public, Sacco members and Saccos, ultimately making life easier for everyone involved in the complaint process. Further accessing the portal is easy and is available under our complaints section of the website via http://www.sasra.go.ke/ComplaintsHandling.


--- Ends ---


Notes for Editors


The Sacco Societies Regulatory Authority (SASRA) is a statutory state corporation established under the Sacco Societies Act (Cap 490B) of the Laws of Kenya and came into full operation on 18th June 2010. The Authority is charged with the role of regulating, licensing and supervising deposit taking Sacco Societies (popularly known as Front Office Service Activity or FOSA) in Kenya.


The establishment of SASRA, which falls within the Government of Kenya’s reform process in the financial sector, has the objectives of protecting the interests of Sacco members, ensuring that there is confidence in the public towards the Sacco sector and spurring Kenya’s economic growth through mobilization of domestic savings.

WASHINGTON–A new group has been formed made up of CU regulators from around the world. Credit union regulators from 30 jurisdictions have come together to form the International Credit Union Regulators’ Network (ICURN).

The organization grew out of an informal network of credit union regulators that has been operating since 2007.

In a statement announcing its formation, ICURN said it has become an important forum for financial cooperative regulators to share perspectives on the sound oversight and regulation of financial cooperatives.

“As an independent association, ICURN will facilitate the sharing of information, provide research, training and best practices on financial cooperative supervision and promote international coordination among financial services regulators as called for by the Group of 20 (G-20) nations,” the organization said in a statement.

Last week 52 supervisors from 22 countries met in Washington for ICURN’s first meeting as an independent association to discuss cyber security, credit risk assessments, governance, financial inclusion and mobile money developments.

“The development of ICURN as an independent and sustainable association for credit union supervisors around the globe is a reflection of both the value that is provided to supervisors over the years and the future anticipated needs,” said Martin Stewart, chairman of ICURN. Stewart is Director Banks, Building Societies and Credit Unions at the Prudential Regulation Authority at the Bank of England. Other members of ICURN’s steering committee include:

  • Lucy Ito, National Association of State Credit Union Supervisors
  • John Kutchey, National Credit Union Administration
  • Francisco Mier, National Bank and Securities Commission (Mexico)
  •  John Mwaka, SACCO Societies Regulatory Authority (Kenya)
  • Pat Ryan, Nova Scotia Credit Union Deposit Insurance Corp. (Canada)
  • Sudarshan Sen, Reserve Bank of India

  • Wiktor Kaminski, National Association of Savings and Credit Unions (Poland)
  • Marie Boyer, Central Bank of Haiti
  • Anne Marie McKiernan, Central Bank of Ireland

The group’s operations are being managed by Dave Grace & Associates. Grace was among the founders of ICURN.


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