Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya has warned SACCOs that fail to file statutory returns that they risk regulatory action, including suspension or cancellation of licences, as the government moves to tighten compliance in the sector.

Speaking during the commissioning of the presidential pavilion at the National Police College, Embakasi B campus, Oparanya said the ministry had intensified enforcement across the cooperative sector, where more than 13,000 registered and licensed SACCOs are now required to submit their returns.

“We have 13,000 registered and licensed SACCOs, but only a few have been making returns. We are now insisting that filing of returns is mandatory, and those who fail will face regulatory action after the grace period,” he said.

The CS said SACCOs will be given a three-month window to regularize their compliance status, after which the ministry will take firm action against those that fail to meet the requirement.

Oparanya said the reforms are aimed at strengthening governance, accountability and financial stability in the cooperative movement, which he described as central to Kenya’s financial inclusion agenda.

He added that the government is developing a savings protection framework.

“We are working on a guarantee framework to protect members’ savings, a central liquidity fund to address cash flow challenges and a stabilization mechanism for SACCOs facing distress,” he said.

Oparanya commended the Kenya National Police DT SACCO, describing it as one of the best-managed SACCOs in the country.

“The Police SACCO remains one of the best-managed SACCOs in the country. Others should emulate its standards of governance and accountability,” he said.

Kenya National Police DT SACCO Chairman David Sohelo Mategwa said the institution remains independent and guided by the seven cooperative principles, including concern for the community.

“We are independent and we serve our members while aligning ourselves with the seven principles of cooperatives, including concern for the community. We have been undertaking various CSR activities,” he said.

Mategwa added that the newly commissioned facility, built at a cost of Sh66.1 million, will support institutional events and also serve members of the public during key ceremonies, including graduations at police training institutions.

“We have used Sh66.1 million for this establishment. We do not take it for granted that there are also other SACCOs doing what we are doing, but we remain among the best-performing SACCOs. Our asset base has grown to over Sh64 billion,” he said.

Oparanya urged young officers to embrace a savings culture, saying discipline in service should be matched with disciplined personal financial management.

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