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SACCO Societies Act 2008: Governing SACCO Societies in Kenya

SACCO Societies Act 2008 is an act of the Parliament of Kenya to make provision for licensing, regulating, supervising, and promoting savings and credit cooperative societies (SACCO) and establishing the SACCO Societies Regulatory Authority (SASRA).

SACCO Societies Act designs the framework under which SACCOs in Kenya are registered and governed. The act was passed on 24th December 2008 and commenced on 26th September 2009. It outlines the establishment, roles, and objectives of the regulatory body to license and supervise deposit-taking SACCO societies in Kenya. The act constitutes seven distinctive parts provided below:

Part I – Preliminary

Part I of the SACCO Societies Act outlines the implementation and application aspects of the act in Kenya while explaining the meaning of different terms used in the act.


Some of the terms are mentioned here.

  • Associate – The term expresses a relation to a company such as a subsidiary or a holding company, or an individual like any member of the family.
  • Board – It means the board of the authority in the top management.
  • Board of trustees – It means the board of trustees as established by section 56 of this act.
  • Central Bank – Central Bank of Kenya
  • Deposit-taking business – It is a SACCO business that accepts deposits on a day-to-day basis
  • Minister – It means the minister who will be responsible for matters related to the savings and credit cooperatives.


This section talks about the organizations and individuals that this act will be applied to:

  1. Every deposit-taking business
  2. Specified non-deposit taking businesses

Part II – The SACCO Societies Regulatory Authority

According to Part II of the SACCO Societies Act 2008 Kenya, an authority is established to regulate and manage SACCO societies. This authority is called SACCO Societies Regulatory Authority (SASRA). The objectives, functions, and the power of the authority to license and supervise Sacco societies to carry out deposit-taking business. The Act also outlines the board that is formed to manage the authority.

Part III – Licensing of SACCO Societies

This part of the act holds importance for individuals and organizations who aim to carry out a deposit-taking business as it expresses the requirement of a license to be registered as a SACCO. It highlights the process of applying for the license, issuance of the license as well as certain requirements that the organization or the individual need to meet.

Part IV – Governance of SACCO Societies

Part IV of the SACCO Societies Act Kenya touches upon the governance side of the SACCO that is operating in Kenya, including the minimum capital requirements and liquid assets requirements. It mentions the permitted and prohibited business activities that the SACCO societies may undertake.

The act also directs all the deposit-taking SACCO societies to prepare and maintain accounts and records to show the true and fair state of affairs and submit to the authority.

Part V – Regulation and supervision of SACCO Societies

This part outlines various powers of the authority to inspect, regulate, and direct the affairs of the deposit-taking SACCO societies. It also gives the power to the authority to prohibit certain activities and impose restrictions. The authority can also intervene in the management of the SACCO societies to manage affairs and exercise all the powers.

Part VI – The Deposit Guarantee Fund

Part VI of the SACCO Societies Act 2008 Kenya directs SACCOs to establish a fund to be known as the Deposit Guarantee Func which will be invested by the Board of Trustees in government securities and in deposits with banks. The fund will provide protection to the deposits made by members up to 100000 shillings in respect to each member.

Part VII – Miscellaneous

It is the last part of the SACCO Societies Act which comprises aspects related to offences, defaults, penalties, and general regulations related to the officers and members of the SACCO societies.

Download the act

This is the Socities Act by SACCO Societies Regulatory Authority (SASRA). You can have a closer look at the act at your own time. Fill in the form below and we will send it to you.