A section of Savings and Credit Cooperative Societies (Saccos) have strongly opposed the proposed Sacco Societies Amendment Bill 2025 currently under review in the Senate of Kenya, saying it threatens the survival of small Saccos and could lead to loss of jobs across the country.
Leaders and Sacco officials speaking during the opening of a new branch of Ammar Sacco in Mathioya called on lawmakers to reject the bill, which seeks to merge small Saccos with deposits belowKsh 100 million with larger institutions.
EALA MP Maina Karobia, who presided over the launch, described the proposed law as ill-advised and inconsistent with Kenya’s liberal economic system.
He said Saccos have played a key role in empowering millions of Kenyans economically by offering affordable savings and loan services, while also nurturing entrepreneurship.
“Many Kenyans have greatly benefited from Saccos. Beyond deposits and withdrawals, they train members, support businesses and have transformed many lives through enterprise,” said Karobia.
Karobia warned that forcing mergers could weaken grassroots financial institutions that have helped communities access credit and improve livelihoods.
Jeremiah Njoroge who is the chairman Ammar Sacco said the uncertainty surrounding the Bill had already caused anxiety among members, with some fearing they could lose their savings if the law is passed.
“Since the Bill was introduced, many of our members have grown cold feet because they fear for the safety of their money,” said Njoroge.
He urged both Parliament of Kenya and the Senate of Kenya to reject the proposal, saying small Saccos have created thousands of jobs and boosted financial inclusion, especially in rural areas.
Stakeholders argued that instead of compelling mergers, the government should strengthen regulation and support smaller Saccos to grow sustainably.
The debate over the Bill comes as Saccos continue to play a central role in Kenya’s economy by mobilising savings and extending credit to millions of members nationwide.
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