Government warns over briefcase Saccos out to defraud Kenyans ahead of polls

Cooperatives CS Wycliffe Oparanya during training for Shirikiana Sacco delegates at Masinde Muliro University of Science and Technology in Kakamega, on June 11, 2026. [Bernard Lusigi, Standard]

The government has warned over the rising number of Saccos being formed ahead of the 2027 General Election, saying that some are being established with the sole intention of defrauding unsuspecting Kenyans.

Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya said the government will tighten regulations in the cooperative sector to weed out dormant and fraudulent societies and ensure only viable institutions are allowed to operate.

Speaking at Masinde Muliro University of Science and Technology in Kakamega, during training for Shirikiana Sacco delegates, Oparanya said it has become common for individuals to form Saccos and conduct funds drives during the election period before they disappear with members' money.

"We want institutions that are active and sustainable, not those formed to defraud Kenyans. Whenever we approach an election period, people come together, form Saccos, hold harambees and after elections they disappear," he said.

The CS revealed that the ministry has already introduced reforms requiring any Sacco seeking licensing to have a minimum capital base of Sh10 million within the county of operation.

"We have changed the regulations so that for us to license a Sacco, it must have at least Sh10 million. We want to eliminate lazy Saccos that are out to defraud Kenyans and deal only with serious institutions," he said.

Oparanya expressed concern over the huge number of dormant cooperatives in the country, saying that although the Commissioner's register lists more than 30,000 cooperatives, only about 2,000 regularly file returns.

"If you look at the register, we have over 30,000 cooperatives, but when it comes to filing returns, only around 2,000 are compliant. You then wonder where the rest are. That is why we must tighten our laws to ensure we have active and accountable Saccos," he said.

As part of the ongoing reforms, the CS said the government is also seeking to raise the minimum number of members required to register a Sacco from the current ten to at least 1,000 members.

"Right now, the law allows ten people to come together and form a Sacco, but we are saying that number is too small for a viable organisation. We want the threshold increased to 1,000 members," he said.

He cited Shirikiana Sacco saying that it boasts of more than 11,000 members.

Oparanya announced that President William Ruto will officially launch the Sacco on Saturday.

He said the training was aimed at equipping members with the knowledge and skills needed to drive the Sacco's vision of promoting cooperative development, financial inclusion and sustainable economic growth across the Western region.

He revealed that Shirikiana Sacco has identified coffee as its anchor value chain and is expected to unlock economic opportunities for farmers, entrepreneurs, professionals and other productive sectors.

"Shirikiana Sacco will enhance access to affordable credit, support industrialisation, strengthen agricultural productivity and facilitate the growth of micro, small and medium enterprises, thereby creating opportunities for wealth creation and job generation," said Oparanya.

The CS said the Sacco will also provide a social protection framework for members through education and health support programmes, and Social Health Authority (SHA) contributions for members and their dependants.

"This initiative reflects our commitment to building resilient communities and leveraging the cooperative movement as a catalyst for inclusive economic development and shared prosperity," he said.