Oparanya Proposes ‘Fuliza for SACCOs’ as SASRA Pushes Reforms to Boost Transparency and Stability

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Kenya’s cooperative sector is poised for significant reforms following proposals by Cabinet Secretary for Cooperatives and MSMEs Development Wycliffe Oparanya and renewed regulatory commitments from the Sacco Societies Regulatory Authority (SASRA).

Speaking amid growing scrutiny of SACCO governance and financial stability, SASRA Chief Executive Officer David Sandagi reaffirmed the regulator’s commitment to transparency, accountability, and long-term sector stability.
“We must focus on issues that directly affect members — transparency, good governance, and the future stability of SACCOs,” he stated.

Proposed Reform Measures
SASRA has outlined a reform agenda aimed at strengthening oversight and protecting member deposits. Key proposals include:
Intensifying registration and compliance enforcement for unregulated SACCOs
Encouraging consolidation of smaller or undercapitalized SACCOs

Strengthening prudential regulations and liquidity requirements
Aligning policies with modern financial standards
Bringing SACCOs lacking sufficient capital and governance capacity under full regulation
The regulator emphasized that consolidation and policy reform are intended to safeguard members’ savings while ensuring sustainable growth within the cooperative movement.

‘Fuliza for SACCOs’ Proposal
CS Oparanya has proposed the introduction of a SACCO overdraft-style facility — informally dubbed “Fuliza for SACCOs” — to improve short-term liquidity and enhance member access to emergency funds. The concept aims to allow members limited overdraft access based on savings history, similar to mobile lending innovations.
He also raised concerns over governance practices in some cooperatives, warning that official travel by SACCO leaders must be justified, transparent, and aligned with members’ interests to ensure prudent use of funds.
Sector at a Crossroads
Kenya’s SACCO movement remains one of Africa’s largest, mobilizing billions in savings and supporting millions of members. However, revelations that thousands of cooperatives may be operating outside formal regulatory oversight have heightened calls for urgent reforms.
SASRA maintains that the reform agenda is designed not to undermine the cooperative spirit but to secure the future of SACCOs and restore public confidence in the sector.
National Conversation Expected
The proposed reforms are expected to trigger nationwide dialogue among SACCO members, regulators, and financial stakeholders on safeguarding the cooperative model while promoting innovation, financial resilience, and inclusive economic expansion.

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