The Sacco Societies Regulatory Authority(SASRA) had its deficit widen by 49.8% to KSh 32.8 Million in 2022 from a deficit of KSh 21.9 million in 2021 according to audited figures from its latest published results for the financial year ended 30th June 2022. SASRA is the regulatory body that issues permits to Deposit‑Taking Sacco Societies as well as those SACCOs involved in specified non deposit-taking business in Kenya.
The Sacco Sub-Sector Regulator took the biggest hit on its books from Depreciation and Amortization Expense, which increased from KSh 69.2 Million in 2021 to KSh 111.7 Million in 2022.
SASRA increased revenues from levies charged on SACCO businesses, from KSh 420.9 million in 2021 to KSh 495.2 million in 2022 while earnings from licenses, fees and permits increased from KSh 17.4 million in 2021 to KSh 36.9 million in 2022.
The Authority recorded an increase in license fees and permits as new regulation came into play, bringing in large non-withdrawable DT Saccos with deposits of more than KSh 100 million under its supervision. This is in addition to the 175 DT Saccos that are also regulated by SASRA.
According to the Authority’s statement of financial position as at 30th June 2022, its balance sheet size grew from KSh 440.1 million in 2021 to KSh 564.7 million in 2022. Total reserves and funds increased from KSh 440.1 million to KSh 564.7 million in 2022. The Authority saw its accumulated deficit widen from KSh 250.2 million in 2021 to KSh 275.6 million in 2022.
SASRA recorded a bigger deficit in 2022 at a time when its supervisory capabilities are under strain following the widening of its oversight to include Non-Deposit-Taking Savings and Credit Co-operative Societies (BOSAs) with deposits of more than KSh 100 million.
According to the list of authorised SACCOs to undertake deposit-taking business in Kenya in 2023, some 176 Deposit-Taking SACCOs were licensed while 183 SACCOs received specified non deposit-taking business authorisation from SASRA.
These Back Office Service Activity (BOSA) SACCOs were previously supervised by the Office of Commissioner for Co-operative Development.
With reduced financial support from the exchequer, experts have questioned the ability of SASRA to monitor and sanction non-compliant Saccos. The Authority is said to rely heavily on data provided by SACCOs themselves when considering license applications.
Past experience suggests there remains considerable inaccuracy in the information available from many SACCOs. Thus many of the financial distressed societies, usually collapse before the regulator can intervene.
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