Deadline for Saccos to Comply To New Rules Not Extended

The Sacco Societies Regulatory Authority (Sasra) has refused to extend the 30th June 2021 deadline for non-withdrawable deposit-taking Saccos to comply with new regulations, saying the societies had over a year to prepare for the rules.

The regulations are aimed at ensuring that there are mandatory minimum disclosures and transparency in the operations of Saccos and governance structures. This will assist the public in making prudent investment decisions and would also protect members’ savings following cases of Saccos going under with millions of shillings, leaving members penniless.

Sasra warned the public against dealing with any Sacco that will not have complied with the regulations by the set date

“Any person, including members of the public and public entities who undertake such specified non-deposit-taking business transactions or other businesses with an unauthorized person, entity, or Sacco society shall be doing so at his or her risk and peril,” said Sasra Acting chief executive Peter Njuguna.

Sasra also further warned that those Sacco’s that do not comply with the new regulations will not be allowed to continue undertaking their businesses. The regulations affect Saccos with physical offices and also those that conduct their businesses virtually.

The new regulations, however, only apply to those Saccos with deposits worth Sh100 million and above and which have been deemed to present a systemic risk to the government. The rest of the Sacco’s are to be overseen by the respective County Government Co-operative Offices where they operate.

By Fatiha Shabir