The word Sacco stands for Savings and Credit Cooperative Organization and it strives to bring together people with similar social and financial backgrounds. Saccos in Kenya have emerged as the dominant micro-financing societies that spearhead savings and investment


  • Completed application for a license
  • A certified copy of the Sacco Society‚Äôs registration certificate
  • A verified official notification of the Sacco Society‚Äės registered head office
  • A certified copy of the Sacco Society‚Äės bylaws
  • A three-year business plan and feasibility study of the Sacco Society to be licensed detailing the vision and mission, scope and nature of business operations, projected profitability to achieve the minimum prudential standards, control measures and monitoring procedures
  • A certified extract of minutes of the general meeting resolution authorizing the application for the deposit-taking license.
  • The name of the proposed chief executive officer
  • Certified copies of financial statements for the preceding three years, where applicable.
  • An application fee of three thousand
  • In the extent of workers who are salaried, it should be accompanied by a letter from the employer. Also their minutes from the previous SACCO meeting and the application for the registration with the receipts of the payment of fees.
  • evidence that the Sacco society meets the minimum capital requirements prescribed in the Second Schedule
  • information relating to the place of business, indicating that of the head office, and branches, if any

a report by the Sacco society, covering the following‚ÄĒ

(i) objectives of the deposit-taking Sacco society business;

(ii) membership and share capital;

(iii) economic and financial environment;

(iv) organisational structure and management;

(v) financial and risk analysis; (f) such other requirements as the Authority may prescribe.

A Sacco society may appeal to the Minister in reference to refusal to grant a licence within thirty days after receipt of notification of refusal.

The Minister may reverse the decision of the Authority only if‚ÄĒ

(a) the Authority failed to follow required procedures in making its decision;

(b) the Authority’s decision was contrary to the Act and the regulations;

(c) there was no factual basis for the Authority’s decision; or

(d) based on a review of the record the Authority committed a manifest error in its assessment of facts, or abused its discretion in taking its decision.


You will need to propose a Sacco name that will be approved by Cooperative Society Department in Sheria House subject to availability.

Fill form A which is the application for the registration of the SACCO and form B which is the notification of the registered office and the address of the society.

Upon approval of the name, a Sacco registration form will need to compete with details of all the board members and members including proof of identity documents, physical address of all members.

Immediate after the mentioned documents have been received by the cooperative officer call for a meeting after the week from the registration with the proposed members. Usually the quorum should be at least ten members. The members will thereafter be introduced to the meeting and the agenda of be education. In the middle of the meeting, thee will be the appointment of the interim officers with the main idea of oversight of the process.

If satisfied, SASRA will issue a Letter of Intent, upon which the SACCO will be required to set up its business premises, put in place a management information system (MIS)

Once all the above have been completed, SASRA will then conduct an on-site inspection within 30 days.

If satisfied, SASRA will issue a Letter of Compliance to the SACCO within another 30 days.


Before registering a SACCO, you should first counter check to see that it does not engage in the following activities:

Foreign trade operations

Trust operations Investment in capital beyond the prescribed limit

Transacting SACCO society business with non-members Purchase and acquiring of any land except as one that can be seen as an attempt to expand the operation and coverage of the SACCO business beyond the prescribed limits.


Issuance of licence

(1) The Authority shall consider every application made under section 24 and may, if satisfied that the applicant meets the requirements of this Act, grant a licence to the applicant upon payment of the prescribed fee.

2) The Authority shall upon the payment by the applicant of the prescribed fee, issue a licence to a Sacco society to carry out deposit-taking Sacco society business. (3) The licence referred to in subsection

(3) shall, where the other requirements of this section are fulfilled, be issued within fourteen days from the date of payment of the prescribed fee.

(4) Every Sacco society shall be required to pay an annual licence fee of such amount and within such time as may be prescribed by the Authority.

(5) A Sacco society which fails to pay the annual fee by the date on which such payment is due shall in addition to any action by the Authority under section 27 be liable to pay such penalty as the Authority may prescribe.

(6) A Sacco society which fails to commence deposit-taking Sacco business within twelve months of the grant of a licence under this Act shall, if it still proposes to operate such business, make fresh application under section 24.

(7) The Authority may grant or refuse an application made under subsection (6) and its decision shall be final


Minimum capital requirements

All Sacco societies shall comply with and maintain at all times the minimum capital requirements as may be prescribed by the Authority.

SACCOs Minimum liquid assets

(1) A Sacco society shall maintain such minimum holding of liquid assets of its members’ deposits and borrowings as may be prescribed by the Authority.

(2) Every Sacco society shall calculate the average monthly balance of its deposits and borrowings at the close of business on such day as may be prescribed by the Authority.

(3) A Sacco society which does not comply with the requirements of subsection (1), within such period as the Authority may prescribe, shall be liable to pay, on being called upon to do so by the Authority, a penalty interest charge not exceeding one percent of the amount of the deficiency, for every day during which the offence continues.

Prohibited business

A Sacco society shall engage only in such business as the Authority shall prescribe.

Place of business

(1) No Sacco society may open in Kenya a branch or a new place of business or change the location of a branch or the existing place of business in Kenya without the approval of the Authority.

(2) A person who contravenes the provisions of this section commits an offence and shall be liable, on conviction, to a fine not exceeding one hundred thousand shillings, or to imprisonment for a term not exceeding three years, or to both such fine and imprisonment.

Application for loan or credit facility

(1) Any member of a Sacco society may apply to the Sacco society for a loan or credit facility in writing.

(2) A person who applies for a loan or credit facility under subsection (1) shall provide evidence of his or her ability to repay the loan or credit facility. No. 14 of 2008[Rev. 2012]

(3) Every Sacco society shall prescribe in writing‚ÄĒ

(a) a loans policy and procedures manual specifying the criteria and procedures applicable in the evaluation, processing, approval, documentation and release of loans or credit facilities;

(b) an asset review system, which shall accurately identify risk and assure the adequacy of the provisions for losses account;

(c) a system of reviewing the entire asset portfolio including contingent accounts or off balance sheet items and adequate provisioning for losses at periodic monthly intervals.

(4) Where security is required with respect to a loan, the Sacco society may accept as security against any loan, an endorsement by a guarantor or co-guarantor, assignment of an interest in real or personal property, deposits or wages of the borrower or any collateral as may be prescribed by the Authority.

(5) No Sacco society shall grant a loan or credit facility to a person who is not a member of that society.

Limits on loans and credit facility

(1) No Sacco society shall grant a loan or credit facility to a member where the loan or credit facility, in the aggregate, exceeds such limit of the society’s core capital as the Authority may prescribe.

(2) No Sacco society shall grant a loan or credit facility against the security of the core capital of the society.

(3) Any person who contravenes the provisions of this section commits an offence and shall be liable, on conviction, to a fine not exceeding one hundred thousand shillings, or to imprisonment for a term not exceeding two years, or to both such fine and imprisonment.

sacco Insider lending

(1) A Sacco society may make loans to its employees and members of its board of directors.

(2) The conditions for the grant of a loan or credit facility to an employee or board member shall comply with all requirements under this Act with respect to loans to other members and shall not be made on terms more favourable than those extended to other members.

(3) A person who has applied for a loan or credit facility to which this section applies shall not be present nor participate in the consideration of the application.

(4) No director, officer, employee or a member of the board of a Sacco society shall act as a guarantor of any person with respect to a loan advanced or credit facility granted to a person by that society.

(5) A Sacco society may lend to its staff and officials an amount in the aggregate not exceeding such proportion of its total assets as prescribed by the Authority.


(1) The Authority may, by notice in writing to a Sacco society, revoke the licence if the Sacco society‚ÄĒ

(a) ceases to carry on deposit-taking business in Kenya or goes into liquidation or is wound up or is otherwise dissolved or deregistered under the Co-operative Societies Act, 1997; or

(b) fails to comply with this Act, or any rules, regulations, orders or directions issued under the Act or any condition of the licence;

(c) fails to pay the annual licence fee as required under section 25(3);

(d) does not hold at least fifty percent of the capital requirements prescribed in section 30 and the Second Schedule;

(e) has knowingly engaged in serious criminal or fraudulent acts that are likely to cause insolvency, substantial dissipation of assets or earnings or may otherwise weaken the deposit-taking Sacco society’s condition or seriously prejudice the interests of the deposit-taking Sacco society’s members.