The purpose of this study was to investigate the determinants of financial distress in Deposit Taking Sacco Societies in Kenya. SACCOs are an important pa1t of the financial sector in Kenya, providing savings, credit and insurance services to a large part of the population. The SACCO stakeholders are faced with challenges to increase financial returns and such challenges comes with increase in risks. Insolvency situation is a major risk to SACCOs in Kenya hence a source of financial instability. Both primary and secondary data was collected in this study. Data was obtained from a sample of 61 Deposit taking SAC COs out of a population of 174 licensed Deposit Taking Saccos in Kenya as of31 December 2017. The secondary financial data was obtained from SASRA, the SACCO regulator for the 5 years under study and a comprehensive listing provided for licensed Deposit Taking SACCOs. The Z-Score model developed by Altman was used in the analysis of secondary data, to assess the annual financial statement to determine the level of financial performance and stability of the DT-SACCO sector. Questionnaires were used to collect primary data from Sacco Executives. This data was analyzed using descriptive and inferential statistics such as correlation and logistic multiple regression. The multiple logistic regression analysis was done using R-Programming statistical software. Varied statistical tests such as t-test, F-test, Spearman Correlation, deviances and McFadden R2 were employed to make statistically significant decisions. The study established the determinants of financial distress in DT-SACCOs and identified the strategies employed by these SACCOs to overcome these challenges. The financial analysis done showed a fairly distressed financial sector and need to improve performance for DT-SACCOs in distressed and grey zones moving them to a stable zone. Weaker internal controls was the major contributor to negative financial distress among the DT –SACCOs in Kenya while the study identified no clear strategy used to counter financial distress levels. The study concluded that the DT-SACCO sector is fairly distressed and therefore there is need by the stakeholders to address the key determinants by employing appropriate strategies to improve the financial distress levels of the DT-SACCO sector. The study contributes to knowledge in the sector and to the various stakeholders in managing the DT -SAC COs in Kenya.