Members of several Savings and Credit Cooperative Societies (SACCOs) are bracing for a difficult year after the regulator moved to restrict and revoke licences of non-compliant institutions, a decision that directly affects access to savings and financial services.
In a notice issued on Tuesday, February 3, 2026, the Savings and Credit Cooperative Societies Regulatory Authority (SASRA) announced that five SACCOs operating in Nairobi, Samburu, Kiambu, Marsabit and Kajiado will function under restricted licences for the next 12 months. During this period, the SACCOs will be barred from receiving new member deposits and will only be allowed to issue credit.
For members, the restrictions mean an inability to grow savings through their cooperatives in 2026, potentially derailing household financial plans, education savings, and investment goals. Members who rely on continuous deposits to build borrowing power may also find it harder to access loans in the future.
The regulator also disclosed that one SACCO voluntarily ceased operations after transferring its membership to another regulated cooperative last year. Its licence automatically expired and was revoked, effectively stopping all SACCO business from January 2026 as it awaits deregistration and liquidation. Members affected by the closure may experience delays in accessing funds and final settlements.
In a separate enforcement action, SASRA revoked the licence of another SACCO after it failed to apply for renewal by the December 31, 2025 deadline, as required by law. The lapse exposed members to the risk of operating outside the regulatory framework designed to safeguard deposits.
Despite the clampdown, SASRA confirmed that a total of 352 SACCOs remain authorised to operate in 2026. Of these, 176 are licensed to conduct deposit-taking business, while another 176 have been approved to operate as non-deposit-taking SACCOs, having met the requirements of the Sacco Societies Act, 2010.
Announcing the decision, SASRA Chief Executive Officer David Sandagi cautioned members of the public against transacting with unlicensed or unauthorised SACCOs, warning that savings placed in such institutions are not protected. He also urged employers and institutions to stop facilitating illegal SACCO activities through payroll deductions, remittances, or digital payment channels.
Sandagi further directed all licensed SACCOs to display their original licences or authorisation certificates prominently at their head offices, branches and other places of business. He reiterated that regulated SACCOs are prohibited from investing members’ funds in unregulated entities or engaging in non-core or prohibited activities.
SASRA said the enforcement measures are aimed at protecting members’ savings and strengthening confidence in the cooperative sector, even as affected members grapple with the immediate financial impact of the restrictions.
