Updated 12 November 2026
Kenya’s Sacco deposit guarantee fund is provided for in the Sacco Societies Act, but it is not yet protecting members’ savings the way the Kenya Deposit Insurance Corporation protects bank deposits. The Sacco Societies (Amendment) Bill, No. 32 of 2025, aims to fix the legal gaps that have kept the Sacco deposit guarantee fund from working, and to create a central liquidity and shared services system for Saccos. This guide explains what the Bill changes, where it stands, and what you can do to protect your Sacco savings now.
Updated 12 November 2026. Sources: the Sacco Societies Regulatory Authority (SASRA) Sacco Supervision Annual Report 2025 and the National Assembly Bills Tracker as at 23 October 2026. This is general information; the final law may differ from the Bill.
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Why the Sacco deposit guarantee fund matters
Saccos now hold more than a trillion shillings of Kenyans’ money. SASRA’s 2025 report says regulated Sacco assets grew 12.50% in 2025 to KSh1.21 trillion, from KSh1.08 trillion in 2024, equal to 6.63% of nominal GDP. Membership rose to 7.87 million from 7.39 million. At the end of 2025 SASRA regulated 357 Saccos: 179 deposit-taking (DT) Saccos and 178 non-withdrawable deposit-taking Saccos.
| Indicator (SASRA, 2025) | Figure |
|---|---|
| Total assets of regulated Saccos | KSh1.21 trillion (up 12.50%) |
| Assets of DT-Saccos | KSh1.07 trillion |
| Assets of non-withdrawable Saccos | KSh141.36 billion |
| Members | 7.87 million |
| Regulated Saccos | 357 (179 DT, 178 NWDT) |
| Share of assets held by Tier 1 Saccos (over KSh5bn) | 77.62%, in 61 Saccos |
| Average dividend on share capital | 10.00% (10.46% in 2024) |
| Average interest on members’ deposits | 6.72% (7.14% in 2024) |
A bank customer in Kenya has deposit insurance through KDIC (see how KDIC deposit insurance works). A Sacco member does not yet have an equivalent working scheme, which is why the Sacco deposit guarantee fund is one of the most important pending reforms for ordinary savers.
What is wrong with the current Sacco deposit guarantee fund
SASRA’s report says that although the Deposit Guarantee Fund is provided for in the Sacco Societies Act, several legal gaps were identified. It names two:
- No moratorium to build the fund. The law has no waiting period to let the fund accumulate money before it starts paying, which would expose the Government to paying claims immediately after the fund is switched on.
- Unclear board appointments. There is ambiguity in how the independent members of the fund’s Board of Trustees are appointed.
In plain terms, if the fund started today and a large Sacco failed, there would be no pot of money ready to pay members, and the law is unclear on who governs it.
What the 2025 Bill changes
According to SASRA, the Sacco Societies (Amendment) Bill, No. 32 of 2025, does two main things.
1. Makes the deposit guarantee fund workable
The Bill sets a moratorium that lets the fund make payments only once it has accumulated enough money to meet its obligations, with the start date to be agreed by the National Treasury together with the ministry responsible for Saccos. It also deals with the appointment of the fund’s independent trustees. The effect is a build-up period: contributions come in first, and protection for members switches on later.
2. Creates a central liquidity and shared services business
The Bill introduces a new regulated line of business, which SASRA calls the Central Liquidity and Shared Services business. Regulated Saccos would group together to form a secondary Sacco society that provides common services to its member Saccos, services that would be too expensive for one Sacco to build alone. SASRA lists the services earmarked as a central liquidity facility, an inter-lending facility, access to the national payments system, ICT and digital platforms, liquidity management, and payment and settlement platforms.
For members, a central liquidity facility matters because a sound Sacco can run short of cash when many members withdraw or borrow at once. A facility where Saccos can borrow from each other under supervision reduces the chance that a temporary cash squeeze turns into frozen deposits.
Where the Bill stands
The National Assembly Bills Tracker dated 23 October 2026 lists the Sacco Societies (Amendment) Bill, 2025 as National Assembly Bill No. 32 of 2025, sponsored by the Leader of the Majority Party, dated 30 June 2025 and published on 13 July 2025. Its first reading was on 1 April 2026. The tracker shows no second reading yet. Until the Bill passes and is assented to, the gaps SASRA describes remain.
Separately, SASRA reports that the Cabinet Secretary for Co-operatives and MSME Development appointed a Committee of Experts in April 2025 to review the Sacco Societies Act, including proposals on the deposit guarantee fund, shared services and a central liquidity facility. SASRA says it was awaiting the committee’s report. Parliament has already passed one set of amendments: from July 2025, SASRA supervises Saccos for anti-money laundering and counter-terrorism financing compliance.
How to protect your Sacco savings now
Without a working Sacco deposit guarantee fund, members carry more of the risk themselves. Practical steps:
- Use a regulated Sacco. Check that your Sacco is licensed or authorised by SASRA; see how to check if a Sacco is licensed by SASRA and the SASRA licensed Saccos list.
- Read the annual accounts. Look at capital, loan quality and liquidity, not just the dividend. SASRA notes Saccos have been retaining more surplus to build capital, which is one reason average dividends fell to 10.00% in 2025.
- Be wary of outliers. A Sacco promising dividends far above the industry average deserves questions about where the money comes from.
- Do not over-concentrate. If most of your savings sit in one Sacco, consider spreading some to other regulated options such as Treasury bills or a bank deposit covered by KDIC.
- Report problems early. Delayed withdrawals or refunds can be reported to the regulator; see how to report Sacco fraud to SASRA.
To compare the biggest regulated Saccos by assets, loans and dividends, see our guide to the best Saccos in Kenya.
Frequently asked questions
Are Sacco deposits insured in Kenya?
Not yet in practice. The Sacco Societies Act provides for a Deposit Guarantee Fund, but SASRA says legal gaps have kept it from operating. The Sacco Societies (Amendment) Bill, 2025 aims to fix them.
Does KDIC cover Sacco savings?
No. KDIC covers deposits in banks and other institutions it insures. Sacco deposits fall under the Sacco Societies Act and its own Deposit Guarantee Fund.
What is the Sacco Societies (Amendment) Bill 2025?
National Assembly Bill No. 32 of 2025. It would operationalise the Sacco deposit guarantee fund with a build-up moratorium, clarify trustee appointments and create a central liquidity and shared services business for Saccos.
Has the Sacco Bill been passed?
No. The Bills Tracker of 23 October 2026 shows first reading on 1 April 2026 and no second reading yet.
How many Saccos does SASRA regulate?
357 at the end of 2025: 179 deposit-taking Saccos and 178 non-withdrawable deposit-taking Saccos, according to SASRA’s 2025 report.
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