Kenyans urged to bank only with licensed financial institutions.
By Co-op News
Saccos Fraud Investigations Unit has embarked on a major audit on the accounts of cooperative societies suspected to be engaged in fraudulent activities operating without a license.
This followed Agriculture and Cooperative Cabinet Secretary Peter Munya’s directive to the investigating unit to fast-track probe on fraud, embezzlement, and other malpractices in the sub-sector.
Munya, who spoke when he issued Authorization Certification to twenty-five Non-Withdrawable Deposit-Taking Saccos compliant with the Sacco Society Act and the Sacco Regulations 2020, stated that members’ deposits must be protected from a few individuals seeking personal gains.
He urged the Sacco Societies Regulatory Authority (SASRA) to maintain a robust vigilance in the sector to ensure every Savings and Credit Co-operative Society operates under the regulatory framework.
“The public should desist from undertaking any business with unregulated Saccos,” he said.
 “If you are a member of a Sacco, and SASRA does not regulate your Sacco, you must ask why. if the answer is not satisfactory, just do not put your money there.”
He said the government would provide oversight, urging members of the public to do their part in exercising utmost due diligence before transacting with any entity purporting to be a Sacco.
The 25 Saccos issued with authorization certificates are among the 157 societies that had applied for licensing. They will be under SASRA’s radar after being compliant with the Sacco Societies Act 2008.
The certification marks an important milestone in implementing legal and policy reforms in the Sacco subsector, one of the biggest in Africa.
Munya warned that Saccos that will fail to maintain compliance would have their licenses revoked.
 “The prudential legal framework provided in the Sacco Societies Act and the Regulations, 2020 are only meant to ensure that the savings and deposits collected from the public are not only protected but also secured at all times,” he said.
The CS urged the first fully compliant Saccos to always adhere to the legal prescriptions.
SASRA Chairman John Munuve noted that out of 157, 125 were from Nairobi, Kiambu 9, Mombasa 7, Machakos 3, and Siaya 2. In total, Saccos from 16 counties applied for the certification.
Four Diaspora Saccos and one digital Sacco applied for the certification. Non-withdrawable Deposit-Taking Saccos with deposits worth over Ksh100 million are now required to be regulated and licensed by SASRA. The deadline for application was 30th June 2021, and 132 institutions are now awaiting authorization.
Cooperative Alliance of Kenya (CAK) Chief Executive Officer (CEO) Daniel Marube said keeping the cooperative movement free from fraudsters will safeguard gains made, noting that many pyramid schemes are masquerading as Saccos to fleece Kenyans.
