SACCOs and Government Support


Savings and Credit Cooperative Organizations (SACCOs), democratically owned and controlled financial institutions that play a vital role in Kenya’s financial landscape, provide a wide range of financial services to their members, including savings, loans, insurance, and investment products. Particularly well-suited to serving low-income and marginalized communities, SACCOs offer affordable and accessible financial services. Recognizing the importance of SACCOs in promoting financial inclusion and economic development, the Kenyan government provides a number of forms of support, including:

Regulatory oversight: 

The Sacco Societies Regulatory Authority (SASRA) is a government agency that oversees the SACCO sector. SASRA ensures that SACCOs operate in a safe and sound manner, and that they comply with all applicable laws and regulations.

Financial stability: 

The Kenya Deposit Insurance Corporation (KDIC) provides deposit insurance to SACCO members. This means that, in the event of a SACCO’s failure, members are protected up to a certain limit.

Capacity building and training: 

The government provides training and capacity-building programs to SACCO leaders and staff. This helps SACCOs to improve their management and governance practices, and to deliver better services to their members.

Access to credit: 

SACCOs and Government support is evident with access to credit facilities, which enables them to offer competitive loan products to their members.

Tax incentives: 

The government provides tax incentives to SACCOs, which helps them to reduce their costs and reinvest more resources in their members.


The government’s support for SACCOs has been instrumental in their success. SACCOs now play a major role in Kenya’s financial system, with over 20 million members. SACCOs have helped to increase financial inclusion in Kenya by providing affordable and accessible financial services to low-income and marginalized communities.

For example, SACCOs have played a key role in promoting savings habits among Kenyans. In 2021, SACCOs had total savings deposits of over Ksh. 1 trillion. This money is being used to finance investments in businesses, education, and homes. SACCOs have also helped to boost economic growth by providing affordable credit to entrepreneurs and small businesses.

The government’s continued support for SACCOs is essential to achieving the goal of financial inclusion for all Kenyans. SACCOs can play a vital role in helping to create a more equitable and prosperous society.

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