Sharp Daily
No Result
View All Result
Tuesday, July 21, 2026
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Business

2024 cooperatives bill seeks to modernize governance and member protection

rmbunya by rmbunya
October 23, 2025
in Business
Reading Time: 2 mins read

Kenya’s cooperative sector, long hailed as the backbone of community enterprise, is set for a major overhaul under the proposed Cooperatives Bill (2024), which seeks to replace the Cooperative Societies Act (Cap 490) that has governed the movement since 1997. The bill which was passed by the National Assembly on 3rd December 2024 and forwarded for consideration by the Senate on 16th January 2025 seeks to modernize the legal framework to reflect constitutional devolution, strengthen governance and protect members’ savings in a sector now managing hundreds of billions of shillings in assets.

One of the most striking departures from the current law is the move to limit primary cooperatives to a single business objective. Under the old Act, societies were permitted to pursue multiple functions, for example, combining agricultural production with savings and credit or housing. While that flexibility spurred rapid growth, it often blurred accountability and risked mismanagement. The new Bill demands that each cooperative focus on one clear purpose, unless authorized by the Commissioner for Cooperative Development. The intention is to promote professional management, financial discipline and transparency in operations.

The Bill clarifies branding and naming conventions, requiring savings and credit societies to include the term “Sacco” in their names and barring other businesses from using cooperative-related designations without registration. On governance, the bill stipulates that elected board members will serve for three-year terms and are eligible for re-election. This is designed to encourage renewal and curb conflicts of interest that have eroded trust in some cooperatives. According to the bill, to be eligible for election as a board member, an individual must have a minimum of secondary level education and must not have been a member of the supervisory board or nomination committee alongside meeting other integrity criteria.

A further shift is seen in regulatory oversight. Under Cap 490, the Commissioner of Cooperatives held broad, but often under-resourced powers and county governments had little clarity on their role after devolution. The new Bill remedies this by creating an Inter-Government Cooperative Relations Technical Forum to coordinate national and county inspection and dispute resolution at local level, ensuring supervision is both closer to members and consistent nationwide. To strengthen accountability, the Bill enhances requirements for auditing, disclosure and member protection. Cooperatives will have to present timely audited accounts. Every cooperative is required to file an annual return that is accompanied with a certified true copy of the audited financials of the Cooperative for each period of twelve months. If financial statements are not audited within the prescribed period, members of the board automatically lose their positions in the next annual general meeting and shall not be eligible for re-election for three years unless determined otherwise by the Commissioner.

RELATEDPOSTS

Thirty-five SACCOs face sanctions as anti-money laundering rules tighten

January 15, 2026

SASRA warns auditors over SACCO reporting failures

October 30, 2025

Collectively, these reforms mark the most ambitious restructuring of the sector in nearly three decades. By aligning the cooperative framework with the 2010 Constitution, embedding modern governance standards and enforcing greater transparency, the proposed law aims to restore confidence in a movement that continues to play a central role in Kenya’s social and economic transformation.

Previous Post

Coca-Cola HBC to acquire 75.0% of CCBA for USD 3.4bn by 2026

Next Post

CBK turns to gold in bid to diversify reserves and boost stability

rmbunya

rmbunya

Related Posts

KRA
Business

Kenya rolls out digital Advance Cargo Declaration system from August 2026

July 15, 2026
Analysis

CBK reopens kSh 40 billion treasury bond offer

July 15, 2026
Analysis

NSE market capitalization hits record high

July 13, 2026
Business

Kenya misses out on billions as safaricom stake sale nears completion

July 2, 2026
Women work at the front desk of the Centum Investment Company Limited in Nairobi, Kenya, file.  REUTERS/Siegfried Modola
Analysis

Centum sells 60% stake in nabo capital to rock investment bank

July 2, 2026
Business

Kenya’s new 16% VAT on payment processing fees takes effect

July 2, 2026

LATEST STORIES

CA introduces mandatory license for communications equipment importers in Kenya

July 21, 2026

Canada introduces Congo travel ban amid Ebola outbreak

July 21, 2026

How Fintech is Driving MSME Growth and Financial Inclusion in Kenya

July 20, 2026

CBK’s interest rate guidance sparks fresh legal uncertainty for banks

July 20, 2026

Household credit rebounds as Kenyan banks ease lending

July 20, 2026

Special Funds: Let Us Be Careful!

July 20, 2026

Co-operative bank earns spot among africa’s top 25 banks by capital

July 20, 2026

The role of asset allocation in achieving long-term investment objectives

July 20, 2026
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024