Five SACCOs operating in Nairobi, Samburu, Kiambu, Marsabit and Kajiado counties will not be allowed to receive member deposits in 2026 after the Sacco Societies Regulatory Authority suspended their full deposit-taking operations and limited them to credit-only services.
In a public notice issued on Tuesday, SASRA said the affected institutions have been issued with restricted licenses for the 2026 licensing period, allowing them to continue offering loans but barring them from accepting any new or additional deposits from members.
The SACCOs listed in the notice are Dumisha SACCO Society Ltd, Bi-High SACCO Society Ltd, Metropolitan National SACCO Society Ltd, OTK SACCO Ltd and Digital Media Regulated Non-WDT SACCO.
SASRA stated that the restrictions will apply for the entire period from January 1, 2026 to December 31, 2026. In the notice, the authority said, “the Sacco Societies listed in Schedule III herein have been issued with restricted licenses and authorizations limiting their SACCO businesses to Credit-Only Sacco Societies for the period commencing 1st January 2026 to 31st December 2026, and are therefore strictly prohibited from taking new and/or any further deposits from their members.”
The regulator explained that the decision forms part of its ongoing oversight role and is aimed at protecting members’ savings while the SACCOs continue operating under closer supervision.
SASRA warned that carrying out deposit-taking activities without proper approval is illegal and punishable under the law.
“It is an offence punishable by prosecution under the Act and the Regulations made thereunder for any person to conduct or undertake a deposit-taking Sacco business… unless the Sacco Society has been duly licensed or authorised by the Authority,” the notice said.
The authority also cautioned members of the public against dealing with SACCOs that are not licensed or authorised, noting that any such transactions would be done at personal risk. It added that all regulated SACCOs must clearly display their licenses or authorisation certificates at their head offices and branches.
SASRA further directed SACCOs to avoid placing members’ funds in unregulated institutions and to immediately recall any existing investments held in such entities.
The notice was issued as part of SASRA’s annual licensing exercise for 2026, which confirmed that 176 deposit-taking SACCOs and 179 non-deposit-taking SACCOs have been authorised to operate in Kenya during the year.
According to the regulator, Nufaka SACCO Society Ltd stopped deposit-taking activities after merging with Fortune Regulated SACCO Society, while PESA SACCO Society Ltd failed to renew its authorisation and is now barred from conducting any regulated SACCO business.
SASRA said the move to limit the five SACCOs to credit-only operations is meant to protect members’ savings while allowing the institutions to continue lending under strict supervision.
The notice, signed by SASRA Ag. Chief Executive Officer David Sang, reaffirmed the authority’s position on safeguarding the sector, stating: “Regulated SACCO Societies are strictly prohibited from placing and/or investing members’ funds in the deposits and/or equities of any unregulated entity, and any such existing placementsitation and/or investments should be recalled forthwith.”
