A long wait for changes to the law governing Kenya’s co-operative sector is continuing to leave Saccos outside the National Payments System, with the proposed Co-operatives Bill, 2024 yet to clear Parliament.
The legislation is meant to replace the Co-operatives Act, Cap 490, which the sector considers outdated. However, its progress has slowed after the National Assembly and Senate failed to agree on amendments contained in the Bill.
The latest setback came in April 2026 when the National Assembly turned down amendments that had been approved by the Senate. The Bill has since been taken to a Mediation Committee, further delaying its journey to the President for assent.
The Senate Bill tracker shows that the draft legislation was published two years ago before being considered by Parliament. The Senate passed it with amendments and sent it to the National Assembly for consideration.
The National Assembly had earlier passed the Bill with amendments on December 3, 2024. It was later considered by the Senate, where it went through the first, second and final readings on November 12, 2025.
The Senate then made changes to the Bill and returned it to the National Assembly on February 12, 2025 for consideration.
The two Houses must reach an agreement on the amendments before the legislation can proceed to the President for assent. The failure to reach a common position has therefore left the proposed law in Parliament.
According to the Senate Bill tracker, the National Assembly rejected the Senate amendments on Tuesday, April 14, 2026, triggering the mediation process.
Sacco sector players say the disagreement may be tied to sections dealing with governance and the functions assigned to the national and county levels of government.
The delay has also renewed attention on the need to update the legal and regulatory framework governing co-operatives, a sector that controls large amounts of resources and has attracted interest from different groups.
Mentor Sacco chief executive officer Joyce Waceke said there is broad support among co-operatives for changes to the current legal framework, but warned that information circulating about the reforms is not always properly researched.
“There is a lot of goodwill from the co-operatives sector about the need for legal and regulatory reforms. At present, we have numerous forums that are disseminating information, most of which are not well-researched, doing the rounds,” said Waceke.
She said the size of the industry and the resources under its control had made it a target for different interests.
“This industry is huge, with a lot of resources, and therefore attracting the attention of vested interests and groups.”
Waceke said the Bill would require broader public participation and greater understanding before it can successfully become law.
The legislation is now awaiting the outcome of mediation between the two Houses, with stakeholders looking to Parliament to resolve the differences and allow the proposed reforms to proceed.