Saving and credit cooperative societies have been cited to contribute immensely to economic development, alleviation of poverty and unemployment in the developing and developed nations. Despite this contribution, many Saccos have been faced with challenges which may threaten their sustainability and survival. The study sought to investigate the major challenges that have threatened the sustainability of Saccos in Kiambu County and propose practical solutions that can be adopted by the Saccos to ensure their survival. Guided by a descriptive survey design the study randomly sampled fifty (50) deposit taking Saccos which formed the basis of investigation. Data was collected with the help of a self- administered questionnaire and analyzed using descriptive statistics. The findings of the study established that among the challenges facing the sampled Saccos three featured prominently, which included competition from other financial institutions such as commercial banks, microfinance institutions, insurance companies and pension provident funds. In addition the study identified that majority of the Saccos are struggling with capital inadequacy and poor liquidity management which is fuelled by poor leadership and improper governance structures.

Keywords : Sustainability; Capital Inadequacy; Liquidity Management; Leadership; Marketing Strategies.