SACCOS in Kenya faced a number of challenges in their attempt to meet their performance targets. SASRA Act and the accompanying regulations were thus seen as a cure to many challenges affecting the SACCO sector. Despite the intended effect of the regulations, SACCOS still face a number of challenges. Considering that SASRA has embraced CAEL (capital adequacy, asset quality, earnings and liquidity) model in rating financial performance of SACCOS, it would be prudent to assess these specific parameters in order to establish their effect on financial performance of SACCOS. This study strives to assess the impact of SASRA regulations on financial performance of SACCOS. The study used descriptive study approach and involved all the 175 SASRA registered SACCOS through census sampling technique from which secondary data on financial parameters of SACCOS after implementation of the regulations (2016-2020) and before the establishment (2004-2008) were obtained. The study used SPSS version 26 as the platform for data analysis. The data was analysed through time series approach as well as descriptive statistics (frequency, percentages, mean and standard deviation). The study found that after the implementation of the SASRA regulations most of the SACCOS upon adherence to the prescribed regulations performed better financially as assessed through ROA when compared to when the SACCOS were operating before the implementation of the SASRA regulations. The study concludes that SACCOS which adhere to SASRA regulations record good return on assets than when operating without SASRA regulations. The study therefore recommends that management of SACCO societies should consider optimal and strict adherence to all the SASRA regulations for good financial performance of the societies. The policy makers in the ministry concerned should design appropriate directives that allow SACCOS to optimally adhere to SASRA regulations for their own financial stability and good performance.

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