By Kepher Otieno - Reporter
Kenya, 14 June 2026 - National Assembly Speaker Moses Wetang’ula has issued a strong call for urgent legal reforms in Kenya’s cooperative sector, warning that persistent loopholes in existing laws are exposing millions of shillings in Sacco savings to mismanagement, abuse and potential collapse.
Speaking during the launch of Shirikiana Sacco at Masinde Muliro University of Science and Technology, Wetang’ula told Members of Parliament that Parliament must move with speed to review cooperative legislation and seal gaps that continue to weaken governance structures in the sector.
He said weak oversight and regulatory loopholes had left savings in cooperatives vulnerable, cautioning that failure to act could undermine one of Kenya’s most important financial inclusion pillars.
“We must critically interrogate the law and seal all loopholes that allow the plundering of members’ resources,” Wetang’ula said, in remarks that placed renewed pressure on lawmakers to tighten accountability frameworks.
The Speaker described Saccos as a cornerstone of household wealth creation, rural investment and poverty reduction, saying their strength lay in trust, discipline and strict governance.
He drew comparisons with developed economies, citing Sweden as a model where cooperative culture is deeply embedded across society.
“In Sweden, all citizens from the President and Prime Minister to ordinary people are members of cooperatives. They do not save for the sake of saving, but with a clear plan for future stability and security,” he said.
Wetang’ula urged Kenyans—particularly farmers, traders and small business owners—to consistently channel part of their income into Saccos, saying cooperative savings remain one of the most reliable paths to financial resilience in uncertain economic times.
He also praised President William Ruto for appointing Wycliffe Oparanya as Cabinet Secretary for Cooperatives and SMEs, describing the move as a boost to institutional strengthening in the sector.
“When the President appointed Hon. Oparanya, I told him that great people build great institutions. Today, the cooperative movement is something Kenyans can be proud of,” he said.
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At the same time, Wetang’ula flagged governance failures as the biggest threat facing the sector, calling on Parliament’s Trade, Industry and Cooperatives Committee—chaired by Ikolomani MP Bernard Shinali—to intensify oversight and drive reforms aimed at protecting members’ funds.
He said Parliament had a duty to ensure that Sacco members are shielded from rogue officials and systemic abuse through stronger legal safeguards and enforcement mechanisms.
In a significant show of political backing, the Speaker announced that senior government leaders, including himself, would join the newly launched Shirikiana Sacco alongside the Prime Cabinet Secretary, Cabinet Secretaries, Principal Secretaries and Members of Parliament, to strengthen its capital base.
“We will all join Shirikiana Sacco. I will join together with other leaders so that we can give it strong seed capital,” he said.
Wetang’ula also reflected on his personal journey within cooperative societies, noting that Saccos had played a key role in supporting his education and financial stability over the years.
“I joined Parliamentarians Sacco, which helped me pay school fees. I am also a member of Bunge Sacco and Ngarisha Sacco in Bungoma, which continue to benefit me through dividends,” he said.
He concluded by urging political unity, particularly in western Kenya, saying cohesion among leaders was essential for economic progress, stability and shared prosperity.
Explainer: Why Wetang'ula is Calling For Tighter Sacco Laws as Loopholes Endanger Billions in Savings
The National Assembly Speaker described Saccos as a cornerstone of household wealth creation, rural investment and poverty reduction.