Nation Media Group Chief Executive Officer and Managing Director Geoffrey Odundo has urged Savings and Credit Co-operative Organisations to embrace technology and carefully rethink how to safeguard their members’ money.
Speaking during the 10th Annual Sacco Leaders Conference organised by the Kenya Union of Savings and Credit Co-operatives (Kuscco) in Mombasa, Mr Odundo added that they should also focus on understanding the needs of young people and bringing them on board to join, participate in and save through the societies.
Mr Odundo, who was a keynote speaker during the leaders’ conference, congratulated the board of Kuscco for bracing the challenges following regulation lapses that surfaced recently.
“Our work, at times, is to bring to the public what happens. And because of our coverage of the Kuscco scandal, action was taken and importantly, the management chose to confront the issue head-on. I believe Kusco will become one of the best institutions even after this setback,” said Mr Odundo, who was delivering a lecture on transformational leadership in the Sacco sector.
On its part, the government has said that it will tighten oversight of the cooperative sector and fast-track long-pending reforms as part of efforts to protect the savings of millions of Kenyans at the Kuscco.
Cooperatives Cabinet Secretary Wycliffe Oparanya said the government aimed at introducing stronger regulation and a savings protection fund for Saccos as a way to prevent a repeat crisis.
“The ministry had to intervene in the Kuscco issue because it was necessary. Governance lapses emerged and people’s funds were lost. Kusco lost Sh13 billion, and Metropolitan lost nearly Sh7 billion. This has pushed us to tighten policies so we can effectively regulate the Sacco sector and protect the savings of hardworking Kenyans,” said Mr Oparanya.
He noted that although cooperatives are private institutions, the State is duty-bound to safeguard public deposits because of the sector’s far-reaching impact on households and the economy.
The Nation Media Group Chief Executive Officer Geoffrey Odundo addressing delegates at the 10th Annual Sacco Leaders’ Summit in Mombasa December 8, 2025.
Photo credit: Kevin Odit | Nation Media Group
He confirmed that Sh112 million will be released to affected Saccos, money derived from the sale of non-core Kuscco assets, describing it as evidence that accountability within the movement is non-negotiable.
He explained that the government aimed at reforms in the sector through the Cooperatives Bill, which will introduce a deposit guarantee mechanism, a savings protection fund, stronger funding for the Sacco Societies Regulatory Authority (Sasra) through a levy, and a national register of Sacco leaders to prevent officials implicated in mismanagement from moving between institutions.
“Sasra is underfunded and we are pushing as a ministry and through the Treasury we will have a levy that will make the body strong to regulate the sector. Without a strong regulatory institution, it becomes very hard to regulate the sector that now has over 14000 Saccos with only about 300 regulated,” he said.
Mr Oparanya added that the government is committed to ensuring that every shilling saved in a Sacco is as safe as funds kept in a bank, adding that the reforms will anchor the future of the cooperative movement.
“This is a sector with nearly ten million members. We must protect it, strengthen it, and ensure that no Kenyan loses their hard-earned savings,” he said.
Principal Secretary, State Department of Co-operatives, Patrick Kiremi echoed the concerns, warning that Saccos must confront modern fraud risks, including identity theft and digital manipulation. He questioned how withdrawals and reconciliations can be verified in systems where transactions can be deleted, and called for investments only in institutions regulated by the Central Bank.
“Regulation must match modern risks,” he said, urging Saccos to strengthen compliance and improve customer verification.
Kuscco leadership, on its part, pledged to work with the government to restore confidence of people in the institution.
Group Managing Director Arnold Munene said he took over at “one of the most challenging chapters” in the union’s history and appealed for unity within the sector to support the recovery.
He said Kuscco cannot convince policymakers to support the movement if they cannot demonstrate its national impact, stressing that the Sacco movement should not be defined by crisis but by resilience.
Kuscco Chairperson David Madegwa reported progress in refunding members’ money, noting that Sh132 million was refunded in 2024, Sh84 million in Kuscco-specific funds, and that Sh152.2 million is targeted for 2025.
He said members would begin seeing movement in their accounts and confirmed that auctions and asset disposals are ongoing to raise additional funds.
“I want to give you hope that Kuscco, with your support, we will get to the end, to recovery. We are on a painful journey to ensure we recover, and we will pay back all our members,” said Mr Madegwa.
A committee of experts advising the ministry on regulatory issues said the sector must embrace a modern regulatory framework to address long-standing weaknesses. After 20 weeks of consultations, the team proposed shared digital platforms, liquidity tools, insurance schemes, and reforms to the delegate system to ensure stronger governance and faster decision-making.
