Financial distress is disruptive and costly, and especially relevant due to the impact on workers, shareholders, customers, suppliers, communities, and the financial entities. Extreme financial distress often leads to firms’ bankruptcy. This study sought to establish the effect of interest rates and capital adequacy on financial distress of Deposit Taking Savings and Credit Cooperative Organizations in Kenya. A descriptive survey research design was used to establish the determinants of financial distress. The target population included 68 deposit taking SACCOs. Secondary data was obtained from SACCOs records at SASRA. Data collected was analyzed STATA. The study established a p-value of the t-statistic for the estimated coefficient of interest rate was 0.042 which is less than 0.05 indicating that interest rate as a financial distress determinant had significant influence and distressing effect on probability of financial distress in savings and credit cooperative organizations in Kenya. Secondly, the study established a p-value of the t-statistic for the estimated coefficient of capital adequacy was 0.016 which is less than 0.05indicating that financial leverage as a financial distress determinant had insignificant influence and distressing effect on probability of financial distress in savings and credit cooperative organizations in Kenya.