Introduction

Kenya’s remittance market is growing rapidly, with inflows reaching nearly US$ 5 billion in 2024, according to the Central Bank of Kenya (CBK).

While Savings and Credit Cooperative Societies (SACCOs) play a crucial role in Kenya’s financial ecosystem serving 6.8 million members out of a 34.5 million adult population in 2023, they have remained largely excluded from direct participation in the remittance market due to regulatory constraints. That is about to change.

In March 2025, Kenya’s Cabinet approved the SACCO Societies (Amendment) Bill, 2023, signalling a fundamental shift in the regulatory landscape. Among other measures, the Bill introduces the SACCO Shared Services Framework, a long-anticipated step toward operationalising SACCO Central.

SACCO Central is designed to act as a licensed, centralised hub, providing services such as:

• Clearing and facilitation of settlement of payment instructions
• Direct access to the national payments system
• Emergency liquidity facilities, similar to those available to banks via the interbank market
• A shared technology platform to support SACCO operations
• Centralised foreign exchange and remittance licensing on behalf of SACCOs

These developments provide the clearest pathway yet for SACCOs to participate directly in national payments and in the international remittance market a game-changing opportunity, especially for rural SACCOs and their members.