The Sacco Societies Regulatory Authority (SASRA) has issued a strong warning to external auditors who fail to submit mandatory statutory reports on time, saying they will face permanent disqualification from auditing any cooperative institution in Kenya.
According to SASRA, several audit firms have either delayed or failed to submit reports on the financial and operational performance of regulated Saccos for the financial year ended December 2024, violating the Sacco Societies Act.
In a circular released to all approved firms, SASRA Acting Chief Executive Officer David Sandagi said the delays have hindered the regulator’s ability to monitor the stability and compliance of Saccos, which hold billions of shillings in member deposits.
“The authority has noted with concern that some external auditors and audit firms have failed and/or neglected to furnish the authority with the prescribed statutory report,” said Sandagi.
“Any failure to submit the report within the prescribed timelines shall result in a permanent removal from the list of registered and approved auditors for regulated Sacco societies.”
Under Section 45 of the Sacco Societies Act, SASRA maintains a list of approved external auditors eligible to conduct audits for regulated Saccos. Removal from this list means an auditor or firm is barred from handling any Sacco audit work across the country.
SASRA has approved 402 external auditors for the current financial year ending December 2025, but warned those who have yet to file their 2024 reports to do so within 30 days or face deregistration.
Failure to submit the required reports has, in some cases, deprived the authority of crucial data needed to detect financial irregularities and ensure transparency in the sector.
The Sacco movement which serves millions of Kenyans has faced governance lapses and liquidity challenges in recent years, prompting tighter oversight by the regulator.
SASRA’s warning comes amid efforts to clean up the sector following high-profile scandals, including a Ksh13.3 billion heist at the Kenya Union of Savings and Credit Cooperatives (KUSCCO) uncovered earlier this year, which exposed years of cooked books and questionable withdrawals.
Under Section 44(3) of the Act, every Sacco must appoint an external auditor during its annual general meeting. The auditor is required to submit a statutory report within four months of the financial year’s end meaning SASRA should have received all 2024 reports by April 2025.
The statutory report gives the regulator an independent assessment of a Sacco’s solvency, internal controls, and compliance with prudential standards information crucial to protecting members’ savings and ensuring stability in Kenya’s cooperative sector.
By tightening compliance rules, SASRA says it aims to uphold transparency, strengthen governance, and protect the integrity of the country’s multibillion-shilling Sacco industry.
 has issued a strong warning to external auditors who fail to submit mandatory statutory reports on time, saying they will face permanent disqualification from auditing any cooperative institution in Kenya.){kind=link}