Commissioner for Co-operative Development David Obonyo speaks with Daniel Marube, Chief Executive Officer of the Cooperative Alliance of Kenya, during the launch of preparations for this year’s International Co-operative Day celebrations, popularly known as Shirika Day./HANDOUT.

The government has resumed the registration of new Savings and Credit Cooperative Organisations (SACCOs) after temporarily suspending the process last year.

Commissioner for Co-operative Development David Obonyo said the suspension, which took effect in May last year, was prompted by operational and governance concerns affecting several institutions, including KUSCCO, Metropolitan SACCO and Ushuru SACCO.

He spoke during the launch of preparations for this year’s International Co-operative Day celebrations, popularly known as Shirika Day. Obonyo said the government has reopened registration under stricter requirements aimed at ensuring only financially stable and well-governed SACCOs are licensed.

“The process was paused to allow a technical committee to review the legal framework governing SACCOs. The committee has now submitted its report, and we have resumed registration with stricter conditions aimed at ensuring only viable and stable SACCOs are licensed,” he said.

He said a SACCO seeking registration must now have at least 1,000 members and demonstrate access to at least Sh1.2 million in operational capital before beginning operations.

Obonyo added that applicants must also have a physical office, at least one clerical employee, and sufficient share capital to sustain operations for at least 12 months.

“In addition, newly registered SACCOs will be required to demonstrate the ability to mobilise at least Sh10 million within their first year of operation,” he said.

The Commissioner said the new measures are intended to prevent SACCOs from relying on members’ deposits to finance administrative expenses.

“We want SACCOs that can sustain themselves and protect members’ savings,” he said.

“Every SACCO must also have a physical office, staff and proper operational structures.”

He noted that although Kenya has about 14,000 registered SACCOs, only around 4,000 consistently file annual returns, raising concerns about the viability and compliance of many institutions.

“That is why we are enhancing the registration threshold, so that Kenyans can have confidence that their money is safe,” he said.

Daniel Marube, Chief Executive Officer of the Cooperative Alliance of Kenya, said the cooperative movement remains a key pillar of Kenya’s economy, with an estimated 20 million Kenyans belonging to at least one cooperative society or SACCO.

“About 75 per cent of the population depends directly or indirectly on cooperative activities,” Marube said.

He said cooperatives have provided affordable financial services, supported small businesses, financed housing and improved livelihoods for millions of Kenyans.

Marube added that cooperatives have also helped small-scale farmers aggregate and market their produce more effectively, boosting incomes and improving food security.

He urged the government to allow more time for public participation on the proposed delegate system and member education, especially in rural and agricultural cooperatives.

“We support the idea because it promotes quality discussions and better governance. But members need enough time to understand how the system works and why it is necessary,” he said. Marube also called for gradual reforms in the sector and encouraged smaller SACCOs to consider mergers to improve sustainability and competitiveness.

“We may have too many cooperatives in the country. The future lies in fewer but stronger and more viable institutions,” he said.

This year’s Shirika Day celebrations will culminate in a national event on July 4 at Uhuru Park, following county-level activities across the country.

The 2026 theme, “Cooperatives for a peaceful world,” highlights the role of cooperatives in promoting peaceful coexistence, economic empowerment and social cohesion among communities.