Out of 176 Deposit Taking Saccos in the country over 100 are struggling to finance their activities without external borrowing. This is a according to Sacco Societies Regulatory Authority (SASRA), the industry regulator.
Speaking during the 6th Annual Sacco Leaders Convention in Pride Inn, Mombasa, SASRA CEO John Mwaka told the co-operatives leaders and managers to ensure they meet all adequacy ratios as required by law.
“About 110 Deposit Taking Saccos have liquidity challenges. Strong liquidity is critical for their operations. It is like having an expensive car without fuel,” he said.
Mwaka also emphasized on the need of co-operative leaders and managers to be accountable and transparent in their operations noting the government has strengthened the Sacco Fraud Investigation Unit to fight fraud in the sector.
He said already the unit has arrested two people for fraud related charges adding that the graft fight will continue.
The CEO also warned BOSA Saccos have until June to seek license or risk closure.
On technology Mwaka cautioned Saccos against increasing cyber-attacks urging them to take a broad view in their cyber security strategy.
Meanwhile, KUSCCO CEO George Ototo called for stringent measures against public entities that owe Saccos over Ksh 3.8 billion unremitted money.
He also challenged the proposed law requiring co-operative leaders to hold office for three terms of three years each.
The SACCO Leaders’ Convention was organized by KUSCCO under the theme: SACCOs Beyond COVID-19: Accelerating Towards Recovery.
