The government has republished the Sacco Societies Amendment Bill hence coercing savings and Credit Co-operative Societies (Saccos) to share information with credit reference bureaus (CRBs).
This follows the Court of Appeal judgment that nullified the Sacco Societies (Amendment) Bill 2018, alongside 23 other laws for lack of participation by the Senate.
The Bill, which originated from the National Assembly in October 2019, aligns the Sacco Societies Act 2008 with the Banking Act and the Microfinance Act 2008, bringing credit information-sharing under a single regulatory framework.
The new amendment bill seeks to overhaul how saccos operate. At the moment, they are obligated to share positive credit information among themselves but only share data with CRBs under the third parties’ category.
The category, as provided under the CRB Regulations 2013, requires saccos to seek prior approval from the Central Bank of Kenya (CBK) and obtain consent from their customers before sharing the credit information.
“This Bill has been republished following the Court of Appeal judgment in Civil Appeal No E084 of 2021, which nullified the Sacco Societies (Amendment) Bill 2021 for want of participation by the Senate,” Majority Leader Amos Kimunya, who sponsored the Bill said.
The proposed changes further provide for the registration and licensing of Saccos as deposit-taking savings and credit co-operatives. It requires deposit-taking societies to incorporate the phrase “DT-SACCO” or any of its derivatives.
If the Bill is assented into law by President Uhuru Kenyatta, deposit-taking Saccos will have 12 months to comply with the new law.
If the Bill sails through, saccos will, however, be required to issue pre- and post-listing notices to their customers as required by law.
Read also; SACCOs to train on Taxation and Cybercrime Risks.
