The Cabinet approved a law that facilitates licensing and regulation of a Central Liquidity Facility and Shared Services Platform for Savings and Credit Co-operative Societies(SACCOs) as well as the operationalization of the Deposit Guarantee Fund (DGF) through legal Amendments to the Sacco Societies Act.
The Commissioner for Co-operative Development David Obonyo said the Central Liquidity Facility will allow co-operatives to join the national payments system, facilitate inter-borrowing among Saccos, and enjoy share ICT services.
The DGF financial safety net, designed similarly to that of the Kenya Deposit Insurance Corporation (KDIC) for banks, is expected to provide cover to Sacco depositors up to KSh 100,000. Saccos are expected to contribute to the fund as prescribed in the new regulations approved by the Cabinet.
