Ministry of Trade Finalizing Draft Bill for non-deposit taking Saccos

The Ministry of Industry, Trade, and Co-operatives is finalizing on legislation seeks will regulate non-deposit taking savings and credit co-operative societies (Saccos).

The senior deputy commissioner for co-operatives Geoffrey Njang’ombe said that the current Co-operatives Act does not fully comply with the ever-changing growth of the saccos owing to the high volatility of liquid cash handled by many of the Saccos.

“We are targeting the institutions with deposits of up to Sh200 million, but we shall have various tiers of supervision, with deposits of such magnitude, there is need to be adequate checks and balances to ensure the safety and soundness of the money,” he said.

Currently, Saccos in Kenya are regulated by the Sacco Societies Regulatory Authority. The Sacco Societies Act and Co-operative Societies Act provide the legal framework for the running the institutions.