SACCOs (Savings and Credit Cooperative Societies) have yet to show any interest in listing at the Nairobi Securities Exchange(NSE). This is despite them controlling huge cash deposits and big balance sheets that are much larger than those owned by some listed low-tier banks and small to medium sized enterprises.
However, financial regulators are burning the midnight oil to ensure that SACCOs are onboarded at the bourse.
The proposed listing of SACCOs at the NSE, received a further push at a recent July 10th 2026 meeting. Key stakeholders from the National Government, County Governments, Sacco Societies Regulatory Authority, Co-operative Alliance of Kenya, SACCO Central and SACCOs as well as NSE officials met to review progress made. The objective was to discuss modalities of establishing a framework that will facilitate listing and trading of SACCO shares.
According to sources at the NSE, work is currently underway to develop the necessary trading infrastructure, regulatory framework and guiding principles to ensure SACCO shares are traded while preserving the co-operative principles and protecting members’ rights and interests.
The move is a significant milestone since the idea of listing SACCOs at the NSE first gained traction in November 2025.
Listing of SACCOs at the NSE to increase opportunities for members within Co-op Sector
Analysts maintain that if successfully implemented, listing of SACCOs has the potential to deepen Kenya’s capital markets by providing SACCOs with an alternative avenue for raising long-term capital, improving governance and transparency in their operations, enhancing liquidity for members and broadening investment opportunities within the co-operative sector.
While the implementation framework is still work-in progress, the continued engagement with all stakeholders’ signal that the project is steadily moving from concept towards execution.
Regulators have been toying with the idea of setting up a special SACCO share trading counter at the NSE so members can trade shares freely-even without full listing. Meanwhile, digital marketplaces like Sacco Shares and SACCO Hisa Market are being used as Over-the-Counter(OTC) platforms for buying/selling SACCO Share Capital.
Projects and talks between SACCO groups, the NSE and Capital Markets Authority are ongoing to create formal frameworks, “said Dedan Maina, an investment consultant at Ketu Capital.
Among initiatives already in place is SACCO Hisa market, a platform that allows buying and selling of Sacco shares online. It operates in compliance with financial regulations and SACCO Society rules, providing a secure and transparent way to trade SACCO shares.
Key features include Bank-level security for transactions, real-time market prices for SACCO shares, easy portfolio management with order tracking, quick settlement of share sales and is regulated by SASRA for safety.
“There was a time when the NSE was really pushing to have listings from SACCOs but the matter somehow fizzled out. This listing will not affect members access to liquidity when you consider the category of member contributions that would be listed. But I would venture to say that listing of SACCOs will enhance transparency and liquidity in the sector,” said Eric Musau, Director of Research, Standard Investment Bank(SIB).
Top executives in the SACCO industry agree that while listing at the NSE is a game changer, alot of changes to the law must be made to make this happen.
“The Coop Act allows SACCOs to only raise capital from internal sources. So there is a lot of work to be undertaken before we can list at the NSE. SACCOs are members-only social enterprises made up of groups of individuals who have come together with a common goal. Therefore, going to the NSE for capital will change the cooperative business model entirely,” said David Mategwa, Board Chairman, Kenya National Police Deposit-Taking SACCO.
He said that while many initiatives are underway to enable Societies trade their shares at the NSE, including recommendations made by a Committee of Experts appointed by the Government, it is still early days. “We will cross that bridge when we reach there. We will then have clear policy guidelines worked out to enable SACCOs to list,” said Mategwa.
Top officials in the SACCO industry have divided opinions on whether it is the right time for SACCOs to list at the NSE.
“Listing at the NSE needs approval by members during the annual general meetings before any other considerations can be put forward. As at now, SACCOs do not see any benefits that will accrue from listing because it will not assist them in their core business of providing loans to their members,” said Isedorius Agolla Chairman of Kenya Association of Front Office Activity(KAFOSA) formerly known as Coast Association of front office services activities (CAFOSA). KAFOSA seeks to lobby and provide advocacy to Deposit-Taking SACCOs in Kenya.
“At the moment SACCOs have not seen the need to list at the exchange because they are still a private-members only association, Listing will require amendments to the law to make SACCOs public. At the moment, there is work in progress towards establishing a separate desk at the NSE so that SACCOs can be able to trade their shares among themselves. We have not reached those stages where SACCOs can raise cash from the public or list at the exchange,” said Daniel Marube, Chief Executive Officer, Cooperative Alliance of Kenya(CAK), which provides training, advocacy and capacity building for its member societies.
As matters stand, while SACCOs are best suited for the Growth and Enterprise Market (GEMS) segment of the NSE, owing to the little share capital of KSh 40 million, the restrictive Cooperative Act is still a major stumbling block.
“The fact that the Cooperatives Act does not provide for transferability of shares owned by members, does not require full disclosures, quarterly financial statements or even regular audits makes SACCOs not eligible for listing at the exchange,” said an official from a leading investment and stock brokerage firm.
He said while SACCOs can list at the NSE; certain amendments must first be made to the Cooperatives Act for this to happen. The Cabinet Secretary for MSMEs and Cooperatives, can also give waivers to allow Societies to list.
The NSE said it has crafted a special team to specifically reach out to Societies through creation of awareness on the capital markets investments products and financial literacy programmes, in addition to laying the groundwork for the listing of SACCOs
“The endgame is that we want to have solutions, products and activities that are SACCO-centred and what will inform our biggest win as a nation and as an economy would be the day we are able to have SACCOs trading their shares in the open platform,” Jackson Kiminje, NSE’s business development leader in charge of retail, SACCOs and Chamas.
“SACCOs hold strategic importance in the financial ecosystem due to their rural presence and community trust position. While they are powerful vehicles for inclusive growth, many SACCOs remain constrained by outdated technology and governance gaps, “said a recent report by Standard Investment Bank(SIB).
The Investment Bank recommends targeted support for SACCO digitisation, shared infrastructure, and supervisory reform so as to create an alternative inclusion pathway alongside mainstream banking.
The inability to raise cash in the debt market using instruments like commercial paper or bonds has a lot to do with the way SACCOs are structured and an outdated Cooperatives Act Cap 490 that has yet to be reviewed. For instance, it is difficult to list at the exchange when books of a SACCO are never closed, meaning it can recruit new members anytime.
For a trading platform at the NSE to be set up, a review of the SACCO Act must take place. A Society interested in listing at the NSE must change its Articles of Association and convert from a private members’ club to a public entity, before it can raise money from the public.
Current SACCO Laws Remain Restrictive
SACCO Society laws restrict membership to only those who own shares. This means a SACCO cannot list at the NSE, a prospect that could open up its shares to non-members.
Unlike commercial banks or microfinance institutions, SACCOs are limited in how far they can expand their operations, beyond the boundaries set out in the SACCO Act.
CMA is required to issue guidelines to allow Saccos to issue commercial paper or bonds- instruments that are non-tradable. At present, the law is restrictive on who should deposit or borrow from a SACCO.
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