Kenyans belonging to Savings and Credit Cooperative Societies (SACCOs) could see tax reductions if the National Treasury adopts proposals submitted by the Kenya Union of Savings and Credit Cooperatives (KUSCCO).

• KUSCCO is seeking exemption for members from the 20 per cent excise duty on loan processing and account maintenance fees.
• The proposals, submitted on Tuesday, January 6, aim to protect members and ease the cost of living ahead of the 2026 budget cycle.
• KUSCCO argues that applying excise duty violates the doctrine of mutuality, where SACCOs and members transact internally, not commercially.
• The organization also called for widening individual income tax bands to increase the tax-exempt threshold, thereby cushioning low-income earners.
• These proposed changes occur amidst government reforms to restore public trust in SACCOs, including mandatory professional registration for SACCO bosses.