How to Register a SACCO in Kenya: The Ultimate Guide to SACCOs

Learn how SACCOs are revolutionizing Kenya's financial landscape and get expert advice on registering your own. Start your journey today!

Aug 7, 2023 - 14:38
How to Register a SACCO in Kenya: The Ultimate Guide to SACCOs
How to Register a SACCO in Kenya: The Ultimate Guide to SACCOs

Kenya stands out in Sub-Saharan Africa as a giant in the financial sector. SACCOs (Savings and Credit Cooperative Organizations) have significantly contributed to this success, pushing the nation closer to its Vision 2030 of achieving 10% annual economic growth. SACCOs have not only encouraged local savings but also attracted international resources. So, how do you establish one of these game-changing entities in Kenya? Dive in to find out!

The Growing Relevance of SACCOs in Kenya

With more Kenyans keen on joining SACCOs, it's imperative to grasp the fundamental procedures for their registration. A well-structured SACCO offers a robust platform for savings and a reliable avenue to secure capital for various ventures.

Step-by-Step Guide to SACCO Registration

1. Recognizing Types of SACCOs

  • Non-Deposit Taking SACCO: Governed by the Cooperative Societies Act, these SACCOs mobilize savings from members and grant credit against these savings. They can't engage in activities reserved for deposit-taking entities.
  • Deposit Taking SACCO: Regulated by the SACCO Societies Regulatory Authority (SASRA), they offer traditional banking services, including savings, credit, and even ATM facilities.

2. Non-Deposit Taking SACCO Registration

  • Formulate a formal written request to the commissioner for cooperative development.
  • Propose names for approval after a thorough search.
  • Draft clear objectives for society.
  • Have a minimum of 10 members.
  • Provide details (name, occupation, address) of crucial office holders: chairman, treasurer, and secretary.
  • Detail the physical address of the society, including road, plot number, town, and county.
  • Develop the society's constitution.
  • Fill out the SACCO Registration Forms.

Post-submission, a meeting with the proposed members is convened within a week, focusing on pre-cooperative education. Once approved, the SACCO should hold its first general meeting within a month of certificate receipt.

3. Deposit Taking SACCO Registration

  • Show proof of a minimum core capital of Kshs 10 million.
  • Subject all directors and senior management to a fit and proper test.
  • Present a detailed four-year business plan, inclusive of projected financial statements.
  • Fill in the necessary application forms for SASRA, accompanied by relevant documents.
  • Upon SASRA's satisfaction, set up business premises, information systems, and a risk management framework.
  • SASRA will then conduct an inspection. If content, they will issue a License post the payment of stipulated license fees.

4. Licensing and Monitoring

All SACCOs must adhere to stringent licensing requirements set out by respective authorities, ensuring they uphold the vision and values of Kenya's financial sector. Post-registration, SACCOs undergo periodic assessments by SASRA to ensure adherence to regulations.

Understanding Capital Requirements

The success of a SACCO is rooted in its financial foundation. Regardless of its operations, specific benchmarks must be met:

  • Minimum core capital of ten million shillings.
  • Core capital mustn't fall below 10% of total assets.
  • Institutional capital should be a minimum of 8% of total assets.
  • Core capital should always surpass 8% of total SACCO deposits.

READ ALSO: Nyati Sacco Loans: Types, Application Requirements, Forms, Paybill Number

Final Words

Registering a SACCO in Kenya is a thorough process that ensures the integrity of the financial sector. This process nurtures trustworthiness, leading to more expansive growth in Kenya's financial landscape.


  1. What are the core types of SACCOs in Kenya? There are two primary types: Non-Deposit Taking and Deposit Taking SACCOs.
  2. How long does it typically take to register a Deposit Taking SACCO? The estimated time is roughly four months for compliant SACCOs.
  3. What is the minimum core capital for a SACCO? The minimum core capital is ten million shillings.
  4. Why are SACCOs essential for Kenya's economic growth? They stimulate savings and provide avenues for accessing capital, boosting economic activity.
  5. Who oversees SACCO operations in Kenya? The SACCO Societies Regulatory Authority (SASRA) is in charge of regulating and overseeing SACCO operations.

Note: This article is written to the best of the writer's knowledge and adheres to the guidelines provided. Always seek legal counsel when establishing a SACCO or any other financial institution. stands proudly as a preeminent Publication Blog in Kenya, dedicated to delivering an unparalleled wealth of informative content across a multitude of subjects that resonate with both the Kenyan audience and the global community at large. Our unwavering commitment to quality and accuracy has made us a trusted resource for readers not only in Kenya but also in the United States and South Africa.