Savings and Credit Cooperative Societies (SACCOs) in Kenya have been challenged to boldly tackle numerous governance issues facing them to attract more customers and investments.

This comes on the face of the collapse of various SACCOs due to mismanagement and after the multi-billion scandal that rocked Kenya Union of Savings and Credit Cooperatives (KUSCCO).

Various stakeholders attending the third edition of the NCBA SACCO Banking Customer Empowerment Forum urged SACCOs to be more innovative in their operations and strategy to survive in a digital world.

Governance Expert Catherine Musakali asked SACCO boards to embrace good corporate governance and be transparent when engaging with customer funds to clean the sector.

“The most successful SACCOs have embraced good governance and that’s the key to sustainability,” said Musakali during a panel discussion at the significant forum.

Read More

  1. NCBA, Crown Motors partner to make owning Nissan Navara easier for Kenyans
  2. How NCBA Golf Series redefined Kenya's corporate engagement with the sport
  3. 5 easy steps that will make your journey to building your own home stress-free

She also challenged SACCO boards to guide their members to ensure they attract the right skills they need to steer the cooperatives that play a very significant role in Kenya’s growth.

“People don’t give you money because they like you, they give you money in trust that you will give it back” she opined.

The latest data from the Sacco Societies Regulatory Authority (SASRA) reveals that SACCOs controls over Sh1 trillion in total assets and serve more than 6 million members nationwide.


The sector also boasts of more than Sh500 billion in savings and Sh450 billion disbursed in loans as they continue financing livelihoods, businesses, education, housing, and agriculture.

Kenya Power Board Member Eng Albert Mugo challenged SACCO leadership to establish strong governance structures that outlive them and appraise themselves with latest trends.

Eng Mugo called on cooperatives to end unhealthy competition and instead adopt practices that alive to the unique realities they face as they collect and invest members’ contributions.

“We need to get SACCO leaders who are true trustees for their members and diligently safeguard funds entrusted to them,” intimated Eng Mugo.

In the recent scam involving KUSCCO, it was revealed that most SACCOs were left financially exposed owing to illegal withdrawals by senior officials amounting to a whopping Sh6 billion.

On his part, NCBA Bank Kenya Non-Executive Director Mukesh Shah called on SACCO members to elect strong committees to hold the cooperative management to account.

“You have to take accountability to the lowest level when you are handling people’s money. This does not start and end with the board,” Shah advised.

He posed: “Are we acting with integrity whether at board or management level when dealing with other people’s money?”

Based on these emerging weighty issues, NCBA has taken the steering wheel to help the SACCO movement to better navigate the governance and accountability hurdles they face.

Recent reports from the Sacco Societies Regulatory Authority (SASRA) indicate that SACCOs lose more than Sh3 billion annually due to fraud, poor oversight, and weak internal controls.

“As a Ministry, we are committed to working hand in hand with financial institutions like NCBA to create a thriving, transparent and technology-driven SACCO ecosystem,” said Co-operatives Commissioner, Ministry of Co-operatives Transformation and MSME Development, David Obonyo.

He added: “Through strengthened governance, access to capital, and digital, we can ensure our SACCOs remain ethical, competitive, and future-ready.”

NCBA Group Managing Director John Gachora, who presided over the forum, told SACCOs to be innovative to ensure business continuity to better play their key role in economic growth.

Gachora assured cooperatives of NCBA’s full support and proactive engagement to ensure they better adapt to the changing financial landscape and greatly enhance their governance.

“NCBA’s customer obsession strategy is rooted in proactive engagement, human-centered design and tailored solutions that meet customers where they are. In the SACCO space, this means deep listening, co-creating products with SACCO leaders, and ensuring we deliver tools that enhance operational efficiency, member value, and long-term resilience,” said Gachora.

Gachora added: “We believe that empowering SACCOs to serve their members better is not just a business priority, it is a national development goal.”

NCBA offers varied SACCO solutions including core banking systems, payment integrations, digital lending platforms, and training programs for governance and digital transformation.