The regulatory body that watches over Deposit-taking SACCOs (SASRA) has given permits to 175 SACCOs to undertake Deposit- Taking (DT) business in Kenya this year.
In a recent gazette notice, signed by SASRA CEO John Mwaka, the Authority also removed restrictions placed on some twelve DT-SACCOs, fully restoring their operating licenses.
Restored full licenses
The 12 DT SACCOs on restricted licenses in 2020 include Ainabkoi, Goodhope, Kenya Midland, Orient, Uchongaji, Rachuonyo Teachers, Nyamira Tea Farmers, Jitegemee, Stake Kenya, Wevarsity, Telepost and Jumuika Sacco Society Limited.
These DT-SACCOs to operate in 2021 have been licensed under section 28 to the Sacco Societies Act (Act) and regulation 8 of the Sacco Societies (Deposit –Taking Sacco Business) Regulations, 2010 (the Regulations, 2010).
Penalty for unlicensed societies
SASRA warns that it is an offence punishable by criminal prosecution under section 23 of the Sacco Societies Act, for any person including private and public entities to conduct deposit-taking Sacco business with an unlicensed Sacco Society, institution, person or entity.
According to the latest data from the World Council of Credit Unions (WOCCU), Kenya’s credit unions or savings and credit societies, have a total balance sheet size of US$ 10,048,671,112, reserves of US$875,938,666 held by over 8,033 credit unions with a membership of over 8,551,540.
The entire co-operative sector has a loan portfolio worth US$ 7.99 Billion and savings of more than US$ 6.728 Billion.
SASRA to begin supervision of non-deposit takers
Meanwhile, the Authority has also issued a notice on the commencement of supervising and regulating SACCOs carrying out specified non-deposit-taking SACCO business following the Sacco Societies (Non-Deposit Taking Business) Regulations, 2020.
These regulations took effect on 1st January 2021, SACCOs have until 30th June 2021 to comply.
Authority has availed the following documents on its website to assist non-deposit taking SACCOs to comply with the law. These include-
i) A Guidance Note on how to operationalize Non-DT SACCO regulations.
ii) Non-DT SACCO Model By-laws.
iii) The SACCO Societies (Non-Deposit taking) regulations, 2020.
iv) The Non-DT SACCO Data collection template.
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