Unlocking Cross-Border Remittances: A New Chapter for SACCOs in Kenya

Kenya's remittance inflows reached nearly USD 5 billion in 2024, yet SACCOs, which served some 6.8 million members in 2023, have largely been shut out of offering remittances directly because of regulatory constraints. This piece, co-written with colleagues for FSD Kenya, looks at how that is set to change.

What is changing

In March 2025 the Cabinet approved the SACCO Societies (Amendment) Bill, 2023. Among other things, it introduces a SACCO Shared Services Framework, the long-awaited step towards operationalising SACCO Central: a licensed, centralised hub that would provide clearing and settlement of payment instructions, direct access to the national payments system, emergency liquidity, a shared technology platform, and centralised foreign exchange and remittance licensing on behalf of SACCOs.

Why it matters

Until now, SACCOs' options have been limited and complex: setting up a separately capitalised Money Remittance Operator subsidiary, seeking exemptions from the Central Bank or Treasury, or relying on indirect partnerships that have often struggled commercially. Research by FSD Kenya, SASRA and IFAD found that over 20% of SACCOs already offer remittances indirectly, and a further half are keen to enter the market. SACCO Central would simplify and consolidate that access under one regulated structure.

Getting ready

To benefit, SACCOs will need strategic partnerships with licensed remittance players, clear corridor and diaspora strategies, remittance products bundled with savings, credit and insurance, investment in digital infrastructure, sound foreign exchange and liquidity management, and deposit-taking licences to support cash-in and cash-out services.

The article also describes ongoing work under IFAD's Financing Facility for Remittances, including a remittance toolkit for SACCOs developed with the National Remittance Stakeholder Network.