The Co-operative Societies Act (Cap. 490): how co-operatives are run
State Department for Co-operatives · sources read 4 Oct 2026
Co-operatives in Kenya, Saccos included, are governed by the Co-operative Societies Act (Cap. 490, amended 2004) and the Co-operative Societies Rules, 2004, under the Commissioner for Co-operative Development. Every society must have its accounts audited each year and file them with the Commissioner within four months of the year end.
- Fee
- KSh 1,000Inspect the National Co-operatives RegisterKSh 2,000Certified copy of a society's by-laws
- How long
- Register inspection within 3 days
- Where
- Online at ushirika.go.ke, or State Department for Co-operatives, NSSF Building 24th Floor, Bishop Road, Nairobi (020-2731531-9)
Steps
- Know who is in charge: the State Department for Co-operatives, under the Ministry of Co-operatives and MSMEs Development, leads policy and regulation for the sector.
- Keep proper accounts and have them audited at least once a year by an auditor approved by the Commissioner (Section 25 of the Act and Rules 14-19).
- Within four months after the financial year closes, send the audited accounts and annual returns to the Commissioner, and present them to the society's general meeting.
- Download model by-laws for your type of co-operative (Sacco, housing, investment, marketing, transport, boda boda, worker, union) from ushirika.go.ke/downloads.
- To inspect the National Co-operatives Register, apply formally to the Commissioner for Co-operative Development (KSh 1,000). Certified copies of by-laws, inquiry reports or audited accounts cost KSh 2,000 each.
Watch out
- A new Cooperatives Bill (No. 7 of 2024) is still in Parliament. Until it becomes law, Cap. 490 applies, but check for changes before relying on details.
- Deposit-taking Saccos also answer to SASRA under the Sacco Societies Act, but transport (matatu), housing, investment, consumer and marketing co-operatives do not.
- Complaining to the State Department about a co-operative is free; you should get feedback within 10 days.
Who this covers
- The audit and reporting duties apply to every registered co-operative society.
- The national government sets co-operative policy and law, registers and winds up co-operatives, and carries out inquiries, inspections and investigations.
Official sources (8)
- Co-operative Development (Directorate of Co-operative Audit) ushirika.go.ke · read 4 Oct 2026
- Mandate & Functions ushirika.go.ke · read 4 Oct 2026
- Background ushirika.go.ke · read 4 Oct 2026
- Faqs ushirika.go.ke · read 4 Oct 2026
- Downloads ushirika.go.ke · read 4 Oct 2026
- Contact Us ushirika.go.ke · read 4 Oct 2026
- Who We Are sasra.go.ke · read 4 Oct 2026
- State Department for Cooperatives MTEF 2027/28-2029/30 Sub-Sector Report (August 2026) ushirika.go.ke · read 4 Oct 2026