Did you know? 🤔
If a bank collapses today, you are guaranteed at least KES 500,000 of your money back. If a Sacco collapses today, that guarantee is zero.
Dr. Gamaliel Hassan, CEO of Stima DT Sacco, says it’s time to level the playing field. ⚖️
“Our objective is not to increase control, but to ensure that as long as you are an institution handling member deposits in Kenya, we operate within a very consistent and appropriate supervisory framework.”
The introduction of the Deposit Guarantee Fund (DGF) will ensure that your savings in a Sacco are just as protected as they would be in a bank. Because a shilling saved in a Sacco deserves the same respect and security!
The proposed Deposit Guarantee Fund (DGF) aims to:
✅ Create a consistent supervisory framework for all deposit-taking institutions.
✅ Ensure member savings are protected by law.
✅ Provide a safety net so that if a Sacco ever faces challenges, members don’t lose everything.
“We are seeking to strengthen the legal and the regulatory framework, and as we observed earlier, it is abundantly clear that the framework that we are using, there is different oversight, there are different governance standards, and our objective was not to increase the control over Saccos, but it was to ensure that as long as you are an institution handling member deposits in Kenya, that we operate within a very consistent and a very appropriate supervisory framework. As part of our recommendation, we are saying, let us have a deposit guarantee fund. What is a deposit guarantee fund? Every day, you hear us say in the sector that a shilling in a Sacco should be equal to a shilling in a bank.
Today, that is not the case. The reality is, if you lose money in a bank, if a bank collapses today, your account would get at least 500,000 shillings. That is guaranteed by law.
If a Sacco collapses today, how much do you get? How much? Anyone knows? Zero, isn’t it? Absolutely nothing. So the deposit guarantee fund is meant to come into place to enable us, in case, God forbid, a Sacco does collapse, just like in a bank, then we can guarantee our members a return of some of their savings. That is what a DGF mechanism is.”
~ Dr. Gamaliel Hassan, Stima DT Sacco CEO.
