Sasra Welcomes Eacc Report As Opportunity To Strengthen Governance In Kenyas Co-operative Sector
By Admin Wednesday, 19th August 2026
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Strong governance, accountability and integrity remain central to the long-term sustainability of Kenya’s co-operative movement, particularly as millions of members continue to rely on co-operative societies and SACCOs to mobilise savings, access credit and build financial resilience.
It is against this backdrop that the Sacco Societies Regulatory Authority (SASRA) has welcomed the final report by the Ethics and Anti-Corruption Commission (EACC) following a system examination of the management of the co-operative sector.
SASRA Chief Executive Officer, Mr. David Sandagi, joined the Principal Secretary for Co-operatives, Mr. Patrick Kilemi, CBS, Colonel (Rtd) Alfred Mshimba, MBS, EACC Commissioner, Commissioner for Co-operatives Mr. David Obonyo and other sector stakeholders during the presentation and official handover of the EACC report.
The examination, which was conducted between February and April 2026, reviewed the systems, policies, procedures, practices and institutional frameworks governing the co-operative sector, including the State Department for Co-operatives and its agencies.
For Kenya’s co-operative movement, the report presents more than an institutional compliance exercise. It provides an opportunity to examine how governance systems can be strengthened to protect members, improve institutional performance and maintain confidence in one of the country’s most important economic sectors.
1. Why Governance Matters to the Co-operative Movement
Co-operatives operate on a fundamentally different principle from many conventional businesses. Their members are not simply customers. They are owners, users and, in many cases, the ultimate beneficiaries of the institutions they support.
This makes transparency and accountability particularly important.
When members save money through a SACCO, invest in a co-operative or participate in a co-operative enterprise, they expect those institutions to have systems that protect their interests and ensure resources are managed responsibly.
Weak governance can undermine that confidence.
On the other hand, effective governance creates an environment where boards, management, regulators and members can perform their respective responsibilities more effectively.
For this reason, the EACC system examination is significant not only to government agencies but to the wider co-operative membership across Kenya.
2. SASRA’s Role in Protecting SACCO Members
SASRA plays an important role in supervising and regulating SACCO societies within its mandate. Its responsibilities are closely connected to the broader objective of ensuring that SACCOs operate in a manner that promotes stability, sound management and protection of members' interests.
The Authority has therefore welcomed the EACC report as an opportunity to strengthen its own systems and address any gaps identified through the examination.
This approach is important because effective regulation is not simply about enforcing rules after problems occur. It is also about continuously improving systems that prevent weaknesses from developing into larger institutional or financial risks.
Strong internal controls, clear procedures and accountable decision-making structures can help institutions identify risks early and respond to them before they affect members.
3. A Sector-Wide Governance Conversation
The examination covered systems and institutional frameworks across the wider co-operative sector, rather than focusing exclusively on individual SACCOs.
That makes the report relevant to the entire co-operative ecosystem.
The sector includes government institutions, regulators, co-operative societies, SACCOs, boards, management teams, employees and millions of members whose economic activities are linked to co-operatives.
The Co-operative Alliance of Kenya (CAK), as a key umbrella body representing and advocating for the interests of the co-operative movement, also has an important role in promoting a culture of good governance, ethical leadership and accountability across the sector.
For the movement to remain strong, governance should not be viewed solely as a regulatory requirement. It should become part of the everyday culture of co-operative institutions.
This includes ensuring that boards exercise effective oversight, management teams implement sound policies, financial resources are properly safeguarded and members receive adequate information about the institutions they own.
4. Turning the Report into Action
The real value of an institutional examination is ultimately measured by what happens after the report is presented.
A report can identify weaknesses, but meaningful change requires institutions to act on those findings.
SASRA’s commitment to using the report to strengthen its systems, address identified gaps and enhance institutional effectiveness is therefore an important step.
The same principle can apply across the wider co-operative sector.
Where weaknesses are identified, institutions should develop practical corrective measures, establish clear responsibilities and monitor progress. Where systems are already working effectively, they should be maintained and continuously improved.
This creates a culture where governance becomes an ongoing process rather than an exercise undertaken only when an audit or investigation takes place.
5. Building Public Confidence
Trust is one of the most valuable assets in the co-operative movement.
Members must have confidence that their savings, investments and other contributions are being managed responsibly. They must also believe that leaders and institutions will be held accountable when standards are not met.
This is particularly important as Kenya continues to rely on the co-operative sector as an important driver of financial inclusion, savings mobilisation and socio-economic development.
Strong governance can reinforce that confidence.
It can also make co-operatives more resilient by ensuring that decision-making is based on established policies, proper controls and the interests of members rather than individual interests.
6. The Opportunity Ahead
The handover of the EACC report should therefore be viewed as part of a broader effort to strengthen Kenya’s co-operative movement.
For SASRA, the report provides an opportunity to examine and improve its institutional systems. For SACCOs and other co-operative organisations, it reinforces the importance of maintaining effective governance and internal controls.
For sector stakeholders, including the Co-operative Alliance of Kenya, it provides an opportunity to continue promoting ethical leadership, member protection and good governance as essential pillars of a sustainable movement.
Ultimately, the strength of Kenya’s co-operative sector will not be determined only by the amount of money it mobilises or the number of members it serves. It will also depend on the quality of institutions managing those resources.
Good governance protects more than institutions. It protects members, strengthens confidence and creates the foundation for sustainable growth.
As Kenya’s co-operative movement continues to evolve, the EACC report offers a timely opportunity to ensure that governance, integrity and accountability remain at the centre of that journey.