Ruto Lauds SACCO Boom as Government Moves to Tighten Laws and Boost Grassroots Wealth Creation

President William Ruto has reaffirmed the government’s commitment to strengthening Kenya’s cooperative movement, describing SACCOs as key drivers of grassroots wealth creation, financial inclusion, and economic transformation.

Speaking during the launch of the Shirikiana SACCO at Masinde Muliro University of Science and Technology in Kakamega County, President Ruto said the cooperative sector continues to play a central role in agriculture, small business growth, job creation, and industrial development.

He noted that SACCOs have evolved into powerful financial institutions that are transforming livelihoods by providing affordable credit and mobilizing savings at the community level.

“Savings and credit cooperative organisations are engines of grassroots wealth creation,” the President said. “Over the years, the cooperative movement has driven agricultural transformation, expanded access to affordable finance, created jobs, supported industrialisation, and accelerated the growth of SMEs.”

The newly launched Shirikiana SACCO has already recorded rapid growth, attracting more than 12,000 members shortly after its registration in January this year. The SACCO has also established a broad network of promoters across 190 wards in Kakamega, Bungoma, Busia, Vihiga, and Trans Nzoia counties, reflecting strong uptake in Western Kenya.

President Ruto said the early growth of the SACCO demonstrates the potential of cooperatives to deepen financial inclusion and empower communities economically.

“These numbers show the scale and promise of the movement,” he said, adding that SACCOs remain one of the most effective tools for mobilizing domestic savings and supporting local investment.

The President also highlighted the strength of Kenya’s cooperative sector, noting that SACCOs nationwide now serve more than 8 million members and manage assets worth over KSh1 trillion, making the sector a major pillar of the country’s financial system.

He further pointed to rising national savings under the National Social Security Fund (NSSF), which he said have grown significantly from KSh312 billion in 2023 to over KSh700 billion, describing the increase as a sign of improved economic confidence and disciplined savings culture among Kenyans.

To sustain the growth and stability of the cooperative sector, President Ruto announced that the government is undertaking a comprehensive legislative review aimed at modernizing governance structures, strengthening regulatory oversight, and enhancing protection of members’ savings and investments.

The proposed reforms, he said, will ensure greater transparency, accountability, and efficiency in SACCO operations while safeguarding members from financial mismanagement and enhancing public trust in the cooperative movement.

“We are undertaking a major legislative overhaul to modernize governance, reform regulatory oversight, and protect members’ deposits and assets,” the President said.

He emphasized that strengthening SACCOs is central to the government’s broader Bottom-Up Economic Transformation Agenda, which focuses on empowering ordinary citizens through access to finance and economic opportunity.

Stakeholders in the cooperative sector have welcomed the rapid expansion of SACCO membership, noting that increased participation reflects growing confidence in community-based financial institutions.

The launch of Shirikiana SACCO is expected to further deepen financial inclusion in Western Kenya, offering members access to savings products, affordable credit, and investment opportunities aimed at improving household incomes and business growth.

As the cooperative movement continues to expand, the government says it remains committed to supporting its growth as a cornerstone of Kenya’s economic development strategy and a pathway to shared prosperity.