The SACCO Societies Regulatory Authority (SASRA), has today issued 25 specified Non-Withdrawable Deposit-Taking SACCOs with authorisation certificates following compliance to the new 2020 Regulations that came into effect on January 1, 2021.
By 30th June 2021, a total of 157 specified NWDT Saccos (commonly known as BOSAs) had applied for authorisation with the Authority to secure compliance. Most of these SACCOs are now at different stages of compliance processing.
While speaking during stakeholders briefing, SASRA Chairman Mr John Munuve disclosed that the 157 applications received are spread across 16 counties with Nairobi taking the lion’s share at 125. Kiambu county took the second position with 9, Mombasa 7, Machakos 3, Siaya 2 while the remaining SACCOs are each from 11 Counties.
The Authority has 90 days as defined in the Regulations starting 1st July 2021 to assess and decide on the remaining 132 SACCOs awaiting authorisation.
The specified NWDT Saccos include those in which the total non-withdrawable member deposits amount to Kshs 100million and above; those operating digital SACCOs and those whose membership and subscription to its share capital from persons in the diaspora.
Speaking during the stakeholders’ breakfast briefing and issuance of the authorisation certificates to the twenty (20) compliant NWDT Saccos, Cabinet Secretary, Ministry of Agriculture, Livestock, Fisheries and Cooperatives, Hon. Peter Munya noted that through the new SASRA Regulations, the Government is keen to ensure transparency and strong governance structures among Saccos while securing member’s assets and savings.
… Over 157 SACCOs have so far applied for authorisation by the regulator
“As a government, we have to work tirelessly to transform the Sacco subsector and ensure its stability. We have the responsibility to protect the savings made by the public in these SACCOs through regulation. I am elated to note that many SACCOs are now putting in place proper governance structures to enable them to meet the prudential legal framework provided in the SACCO Societies Act and Regulations, 2020 which are mean to ensure that the savings and deposits collected from the public are not only protected but also always secured,’’ said CS Munya.
And added: “Today, I have the pleasure of issuing authorisation certificates to twenty-five (25) BOSA-only SACCOs, which did not only comply but have successfully gone through the vigorous processes prescribed in the law before a Certificate is issued. I must warn the now certified SACCOs that attaining compliance is one thing but maintaining that compliance is a different thing altogether.’’
Under the new regulations, the BOSA-only SACCOs must prescribe to the minimum capital and liquidity requirements that must be always maintained by the SACCOs. Other prudential standards under the new regulations include investment decisions, lending, or credit operations.
Non-Deposit Taking SACCOs are savings and credit societies in which members make deposits, but these savings are not available on call, and can only be withdrawn when the member is leaving the SACCO. These are called BOSA (Back Office Service Activity) operations. This is unlike their Deposit-Taking counterparts, which allow for on-call withdrawals, through their so-called FOSA (Front Office Service Activity) operations. The latter are banks, in all but name.
Currently, SASRA regulates about 175 Deposit-Taking SACCOs. The Government, through the authority, is keen to bring more SACCOs under the regulatory oversight to improve their performance and overall governance.