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No Final Extension of Saccos Still To Comply With The New Code

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The Regulatory Authority for Football Associations (Sasra) has rejected the possibility of extending the June 30 deadline for Savings and Credit Cooperative Societies (Saccos) to comply with the new regulations.

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The rules contained in the Sacco Regulations Act 2020 prohibit saccos from offering a special business of not taking deposits unless they are given a green light by the regulator.

“No Sacco community in Kenya will be allowed to do or continue to do special business of not taking deposits unless the community is fully compliant with the 2020 Laws and Regulations,” said Peter Njuguna, Sasra Ag. EXECUTIVE DIRECTOR.

Read: Uncontrolled Saccos for File Notes or Dangerous Operating Certificates

The regulations were drafted following an increase in the number of saccos or utensils-like equipment that were under members’ funds, and officers disappear or play cat and mouse games with members.

“They think of people who are not worried about making savings around them, and promises to return well. But as soon as they raise money from the public, these entities almost always disappear into thin air, leaving the trustees helpless. questionable instruments, ”said Njuguna.

The regulations that came into effect in January targeted actual saccos and deposits totaling Ksh100 million and more.

Those whose deposits are less than Ksh100 million, and have no base or diaspora, are expected to be supervised by the County Government Cooperative Offices where they operate.

Read: Sidian Bank Provides Post-Covid-19 Renewal Support For Saccos

Njuguna however warned members who would put their money in unregulated organizations that they did so at their own risk.

“Any person, including members of the public and corporations who engage in business activities that do not take deposits or other transactions with an unauthorized person, organization, or Sacco Society, shall be doing so at their own risk and expense. they can be held accountable for criminal charges, ”he said.

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