The Sacco Societies Regulatory Authority (SASRA) has issued a strong warning to Kenyans, advising them to be extra careful before investing or saving money in Savings and Credit Cooperative Organisations (SACCOs).
In a public notice released on Monday, August 25, SASRA expressed concern over rising reports that some SACCOs across the country are still operating without valid licenses. According to the regulator, this is against the law and poses a big risk to unsuspecting members of the public who might lose their savings.
Public Advised to Verify Licenses Before Saving
SASRA reminded Kenyans that it is their right and responsibility to confirm whether a SACCO is officially licensed before making any deposits.
The regulator explained that this can easily be done through its official website, which has a complete list of all SACCOs that are legally registered and allowed to operate.
“Running a SACCO without a valid license is illegal. We encourage every Kenyan to first check the licensing status of a SACCO from the published list before engaging in any financial activity with them,” SASRA cautioned in its statement.
New Licensing Window Open for 2026
Apart from warning the public, SASRA also directed all deposit-taking SACCOs to begin applying for their 2026 operational licenses.
The Authority clarified that the move is in line with the Sacco Societies Act, which requires every deposit-taking SACCO to renew its license at least 90 days before the current one expires.
“The Sacco Societies Regulatory Authority reminds all deposit-taking SACCOs that the renewal window for their 2026 deposit-taking licenses is open from now until September 30, 2025,” the notice read.
The regulator further explained that applications must strictly follow the guidance note and licensing checklist available on its website (sasra.go.ke). Once the application process is complete, the official list of licensed SACCOs for the year 2026 will be published on or before January 3, 2026.
Action Taken Against Non-Compliant SACCOs
This latest announcement comes only a few months after SASRA took disciplinary action against two SACCOs whose licenses were revoked.
In a gazette notice issued on January 31, the Authority revealed that the two cooperatives had failed to renew their licenses and also neglected their responsibility to meet members’ financial obligations.
By law, such failures amount to a serious violation of the Sacco Societies Act, which requires strict compliance to protect members’ deposits.
At the same time, SASRA confirmed that 177 other SACCOs successfully renewed their licenses and were cleared to continue operating both deposit-taking and non-deposit-taking activities across the country.
What This Means for Kenyans
The regulator’s latest warning highlights the importance of vigilance among Kenyans who rely on SACCOs for savings, loans, and investment opportunities.
With cases of unlicensed SACCOs on the rise, the public is being urged to take the extra step of confirming whether the SACCO they wish to join is legally approved.
Financial experts also warn that putting money in unlicensed SACCOs can result in heavy losses, especially if the organisations collapse or disappear with members’ deposits.
The government’s directive is therefore seen as a move to protect ordinary Kenyans and restore confidence in the cooperative sector, which plays a big role in the country’s financial growth.
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