Nairobi: The government has announced plans to transform all existing Matatu or Public Service Vehicle (PSV) Saccos, which are not involved in any savings and credit activities, into 'Transport Cooperatives.' This move aims to address the issue of Matatu Saccos that operate primarily as transport businesses rather than financial entities.
According to Kenya News Agency, Cooperatives and MSME Development Cabinet Secretary Wycliffe Oparanya highlighted that several Transport Cooperatives currently registered or functioning as Matatu Saccos are not engaged in deposit mobilization. These entities, Oparanya explained, are essentially groups coming together to operate transport businesses or manage routes as regulated by the National Transport Safety Authority (NTSA).
Oparanya, who was unveiling the Saccos Supervision Annual Report, 2024, noted the confusion caused by the continued use of the 'SACCO' designation by these entities. He emphasized the need for immediate action to address the situation, as it leads to public confusion and could potentially harm the reputation of SACCOs as regulated and credible financial institutions.
The government, Oparanya stated, is dedicated to protecting public deposits within regulated SACCOs under the current legal framework. He urged the public to refrain from conducting SACCO business with unregulated entities that falsely present themselves as SACCOs.
SASRA has been consistently publishing the list of regulated SACCOs in the Kenya Gazette and national newspapers, as mandated by law, and has made this information available on its website. The report indicates that there are only 355 regulated SACCOs, comprising 177 Deposit-Taking SACCOs and 178 BOSA-Only SACCOs, with deposits exceeding Sh100 million. However, there are numerous BOSA-only SACCOs with deposits below this threshold that are not under SASRA's prudential supervision. The Ministry is exploring ways to bring these SACCOs under SASRA's oversight.
Matatu SACCOs play a crucial role in managing and regulating individual matatu owners, enabling them to pool resources, negotiate better prices for vehicles and fuel, and collectively manage routes and fares under government supervision. Notable Matatu SACCOs include Super Metro Sacco, 2NK Sacco, Molo line Sacco, and Embassava Sacco, each serving distinct routes across the country.