Small Unregulated savings and credit societies (Saccos) have been given 30 days to file their details with The Sacco Society Regulatory Authority (Sasra) or risk losing their operating certificates effective June 2021.
The government has moved in to regulate Saccos that have accumulated more than Sh100 million. The authority is targeting tech-enabled non-deposit taking Saccos that collect contributions from its members online and on mobile phones, and those that collect funds from the diaspora.
“Given that upon the expiration of the transition period on June 30, 2021, no Sacco shall be allowed to undertake or to continue undertaking the specified non-deposit taking business, unless the Sacco will have complied with the Act and regulations 2020,” Sasra CEO John Mwaka said in a notice.
The authority’s new Sacco regulations seek to highlight operations including filing regular audits on capital, operations, and liquidity.
The government regulates 172 Sacco entities deposit-taking, loan-issuing Saccos out of the thousands operating in the country.
Sasra’s reports show that the regulated deposit-taking Saccos hold Sh487.4 billion in assets. The regulator requires the Saccos to submit timely audits and reserves to back their levels of risk.
The ones targeted operate with a certificate from the Ministry of Cooperatives as non-deposit taking Saccos and hardly ever submit their audits, spanning years.