What is the SACCO Societies Deposit Guarantee Fund?

The SDGF is a member-protection scheme established under section 55 of the SACCO Societies Act 2008. It insures deposits at SASRA-licensed Deposit-Taking SACCOs (DT-SACCOs) up to a per-depositor ceiling set by the SDGF Board. SACCOs pay an annual contribution into the Fund.

What is the current cover ceiling per member?

The cover ceiling is set by the SDGF Board and reviewed periodically. Historically it has been set at KES 100,000 per depositor per DT-SACCO, in line with the initial threshold in the SACCO Societies Act 2008. Confirm the current ceiling directly on sasra.go.ke or with the SDGF, because the amount can be reviewed. Marked unverified where a specific current-year figure is not cited to a primary source.

Does the fund cover my share capital?

No. The Deposit Guarantee Fund covers member deposits only. Share capital is your ownership stake and is not covered. On failure, share capital ranks as equity behind creditors.

Does it cover non-DT SACCOs?

No. Only SACCOs licensed by SASRA as DT-SACCOs contribute to and are covered by the Fund. Non-DT SACCOs are outside the scheme.

SACCO Deposit Guarantee Fund Kenya 2026: what SDGF covers

SACCO Deposit Guarantee Fund explained (Kenya 2026): what SDGF actually covers

The SACCO Societies Deposit Guarantee Fund covers deposits at SASRA-licensed DT-SACCOs. This guide explains the cover ceiling, what is covered, what is not, and how a claim works when a SACCO fails. Verified 26 August 2026.

by Arnold Ochieng Reviewed by Michael Mwangi 9 min read Updated 26 August 2026Verified 26 Aug 2026

What the Fund is

The SACCO Societies Deposit Guarantee Fund (SDGF) is Kenya's equivalent of the Deposit Protection Fund at commercial banks, but for the SACCO subsector. It was established under section 55 of the SACCO Societies Act No. 14 of 2008, and it is administered by the SDGF Board (a separate corporate body from SASRA, though the two work closely together).

The Fund exists to compensate members if a licensed DT-SACCO becomes unable to pay its deposit obligations. Every DT-SACCO pays an annual contribution into the Fund, calculated as a percentage of total deposits, and the Fund holds the accumulated pool as reserves.

The cover ceiling: what to expect

Section 55 of the SACCO Societies Act 2008 set the initial cover at KES 100,000 per depositor per licensed DT-SACCO. The Board is expressly empowered to review the ceiling from time to time to reflect economic conditions and the growth of the sector.

Because the ceiling can be revised by the Board, we mark the current-year figure as unverified unless a specific primary-source publication is cited. Confirm the currently applicable ceiling on sasra.go.ke or in the most recent SDGF communication.

Reference point	Amount	Source
Initial statutory ceiling (2008)	KES 100,000 per depositor per DT-SACCO	SACCO Societies Act 2008, section 55
Current ceiling (2026)	Unverified	Confirm on sasra.go.ke or with the SDGF Board

The ceiling is applied per depositor per DT-SACCO. If you have deposits at more than one DT-SACCO, the ceiling applies separately to each. Joint accounts are covered up to the ceiling per joint holder in most deposit-insurance schemes, but the exact treatment in the SDGF should be confirmed with the Board.

What is covered, what is not

Covered. Deposits at a SASRA-licensed DT-SACCO. This includes BOSA non-withdrawable deposits and FOSA savings and current accounts. See FOSA vs BOSA explained.
Not covered. Share capital. Share capital is your ownership stake and ranks as equity behind creditors on liquidation.
Not covered. Deposits at non-DT SACCOs (SACCOs not licensed under the SACCO Societies (Deposit Taking) Regulations 2010).
Not covered. Investment products offered through the SACCO that are structured as third-party investments rather than deposits.
Contingent. Deposits pledged as guarantee against a loan may be applied against that loan first, so the net covered amount is the balance after loan set-off.

How a claim actually works when a SACCO fails

A DT-SACCO can fail for a range of reasons: prolonged insolvency, loss of confidence, systemic fraud, or persistent breach of the prudential ratios in the SACCO Societies (Deposit Taking) Regulations 2010. The typical sequence:

SASRA intervention. If prudential ratios are breached, SASRA can direct management changes, restrict operations, or appoint a statutory manager under the Act.
Rescue or resolution. If intervention does not restore the SACCO, SASRA can order merger with another SACCO, sale of assets, or liquidation.
Deposit payout. If liquidation is ordered, the SDGF stands ready to compensate depositors up to the cover ceiling. Payout is typically routed through a paying bank and is subject to identification of the depositor.
Recovery from the estate. Amounts above the cover ceiling become a claim against the estate of the failed SACCO. Recovery depends on the value realised from the loan book and other assets.
Share capital last. Share capital, as equity, is repaid only after all creditors and depositors above the cover ceiling are paid. In practice, share-capital recovery in a real failure is often close to zero.

When the Fund actually kicks in

The Fund does not pay out on operational stress, temporary liquidity squeezes, delayed dividends, or member disputes. It kicks in when a licensed DT-SACCO is placed under liquidation and the depositor cannot be paid by the SACCO itself.

Kenya's DT-SACCO sub-sector has been broadly stable, and full SDGF payout events have been rare. But historic cases of SACCO stress (deregistrations, statutory management, forced mergers) do exist, and the Fund is the last line of defence for depositors when they occur. See what happens when a SACCO fails in Kenya for the resolution timeline in more detail.

What to check before you deposit at a SACCO

Confirm the SACCO is on the SASRA register of Licensed Deposit-Taking SACCOs. Verify on sasra.go.ke/licensed-dt-saccos.
Do not confuse registered co-operative society with SASRA-licensed DT-SACCO. Only the second category is inside the Deposit Guarantee Fund.
Understand the split between share capital and deposits. Only deposits are covered. See share capital vs deposits explained.
Read the SACCO's most recent audited accounts. Look for capital-adequacy commentary, delinquency ratios, and any auditor qualifications.
If you are placing a large deposit (above the SDGF ceiling), consider splitting across two DT-SACCOs to stay within the per-SACCO cover.

Member protection beyond the Fund

The Fund is not the only member protection. Members also have:

SASRA prudential supervision. DT-SACCOs file monthly, quarterly and annual returns and are subject to on-site inspection.
Statutory audit. Annual audit by a qualified accountant is required, with the audit opinion tabled at the AGM.
AGM oversight. Members approve accounts, elect the board and supervisory committee, and set dividend and interest rates.
Complaints route. Members can lodge complaints with SASRA if by-laws or the Act are breached.

Sources

SACCO Societies Act No. 14 of 2008 (as amended), section 55 establishing the SACCO Societies Deposit Guarantee Fund and specifying the initial cover at KES 100,000 per depositor per DT-SACCO.
SACCO Societies (Deposit Taking) Regulations 2010, prudential ratios and SDGF contribution provisions.
SASRA, sasra.go.ke, and the SDGF Board. Verify the current cover ceiling before relying on it for a specific deposit decision.
SASRA SACCO Supervision Annual Reports, sasra.go.ke/sacco-supervision-reports.