- Competition – There had been steady rise in the level of competition from commercial banks which have encroached into the traditional role of the savings and credit co-operatives. Many micro-finance institutions have also joined the field to provide the same services as those of SACCO .
- Managerial challenges – Most of the co-operative societies have experienced managerial which in some cases have nearly cause near collapse of some of the societies
- Delayed remittance – some employers have been delaying remitting members deductions to the society. This has affected the society’s cash flow affecting the society lending programs. Members may take for long to get the loans as a result.
- HIV/AIDS – The scourge has affected many members. The society spend a lot of money in assisting the families affected though, for example ,offsetting or writing off of loans.
- Government policy – The government through the Ministry of co-operatives has been regulating the sector. sometimes the government may design some policies that will affect the members or society adversely e.g. 1/3 rule
- Political interference – especially during the elections of officials, some politicians support their friends to be elected
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