The Kenyan government has announced significant reforms for Savings and Credit Cooperative Organisations (SACCOs) to protect members' funds and restore confidence, following concerns over financial mismanagement. A key reform is the establishment of a deposit guarantee fund, similar to those in the banking sector.

• A new deposit guarantee fund will protect SACCO members' savings in case of institutional collapse, mirroring the Ksh500,000 compensation for bank depositors.
• Principal Secretary Patrick Kilemi stated that these reforms will be implemented within the next 6 months.
• The reforms also include empowering the Sacco Societies Regulatory Authority (SASRA) with increased oversight, such as vetting SACCO leadership, and bringing unregulated SACCOs under formal supervision to minimize risk to members.