SASRA downgrades license of 5 SACCOs to Credit-only Status

SASRA( Sacco Societies Regulatory Authority) has suspended 5 SACCOs from receiving deposits, allowing them to operate under restricted credit-only permits.

This means that Dumisha SACCO Society Ltd, Bi-High SACCO Society Ltd, Metropolitan National SACCO Society Ltd, Ol’Kaunsel Regulated Non-WDT SACCO Society Ltd, and Digital Media Regulated Non-WDT SACCO Society Ltd, will not be permited to do deposit-taking business.

The regulator has taken these measures to safeguard members’ funds and spare them the lengthy liquidation process once the affected SACCOs have had their licenses revoked.

A case in point is the troubled Metropolitan National Sacco Society, which has seen its deposit-taking license downgraded to a credit-only status, meaning it cannot recruit any more new members nor accept deposits from members.

In the past, SASRA has taken the route of revoking the permits of those SACCOs that fail to meet the minimum statutory requirements, including SACCOs whose officials have been implicated in theft of Society funds.

Last year, SASRA revoked the permits of two Nairobi-based SACCOs namely B-SMART Sacco Society Limited and Multiple Sacco Society Limited. The reasons for these revocations, according to the regulator, was failure by both entities to apply for renewal of the authorization and their inability to meet members and compliance obligations.

In a Gazette Notice dated January 28, 2026, SASRA has issued licenses to 176 SACCOs to conduct deposit-taking SACCO business for the period from January 1 to December 31 2026. This is compared to last year when the regulator gave permits to 178 SACCOs to engage in deposit-taking business, and 176 SACCOs in 2024.

Nufaika Sacco Society, based in Kerugoya, Kirinyaga County and PESA Sacco Society have dropped from the 2015 list.

SASRA said Nufaika Sacco Society Ltd voluntarily ceased deposit-taking business after merging its membership with Fortune Regulated SACCO Society, also based in Kerugoya. It is therefore no longer authorised to operate as an individual entity since its licence expired on December 31.

The Authority has been pushing smaller SACCOs that have no financial muscle to keep up with the stiff competition or meet minimum licensing requirements, to seek for mergers and amalgamations. The objective is to enhance stability in the SACCO business while ensuring members continue to receive services and their savings remain protected.

PESA SACCO Society Ltd did not apply for licence renewal by December 31, 2025, and is also therefore no longer authorised to operate as a regulated SACCO.

In addition, another 176 SACCOs have been authorised to operate as Specified NonWithdrawable Deposit-Taking SACCOs for the period specified in the Gazette Notice.

These SACCOs are permitted to offer credit and other approved services as defined under the Sacco Societies Act and applicable Regulations, and are not allowed to receive demand deposits or operate front office (FOSA) services.

In the 2025 business cycle, the Authority issued licenses to 355 SACCOs, according to a list published in the Kenya Gazette Notice Vol. CXXVII—No. 15, dated 24th January, 2025.

This list was made up of 178 SACCOs permitted to engage in deposit-taking business, up from 176 SACCOs in 2024. Also licensed were 177 SACCOs to undertake Back Office Service Activity(BOSA) only or non-deposit taking business, down from 181 BOSAs in 2024.

SASRA said publishing the list of licensed SACCOs is in line with its statutory mandate under the Sacco Societies Act, 2008, and as part of the continued Government’s statutory objectives to protect SACCO members’ savings and strengthen the SACCO sector, while clearly showing which SACCOs are authorised to operate in 2026.

The regulator has assured the public that it will continue to assess compliance levels for each SACCO and prescribe specific measures for non-conformance.

This is in exercise of the Authority’s supervisory and enforcement powers aimed at protecting new depositors or further loss of deposits by current depositors whilst allowing the SACCO Society to take appropriate recovery measures, including realisation of the outstanding assets to meet the current or maturing liabilities.

The regulator has further cautioned the public that it is illegal to operate a SACCO as defined in the legal framework that is not licensed or authorised to operate a deposit-taking business or a specified non-deposit-taking business

As such, anyone dealing with an unlicensed entity, undertaking regulated SACCO business, does so at their own risk.

All licensed SACCOs must display their licences at their offices and are prohibited from investing members’ funds in unregulated or non-core businesses. At the same time, unscrupulous employers and institutions have been cautioned against withholding SACCO dues or failure to provide digital platforms, such as digital and payroll platforms to their staff who belong to SACCOs.