Members of Parliament supported the Sacco Societies Amendment Bill (National Assembly Bill No.55 of 2021) when it was presented before the house by the Leader of Majority Amos Kimunya in early February.
This Bill aims to reduce the regulatory burden on Saccos and ensure faster, efficient and accurate reporting, monitoring and analysis of Saccos’ financial status at any time, being the cornerstone of Risk-Based Supervision.
The Bill also seeks to align the definition and roles of Minister to Cabinet Secretary and the responsibility and Office of the Controller of Budget as reflected in the Act, to be in line with the constitution.
The Bill went through the second reading on Wednesday, 9th February 2022.
This Bill was republished following the Court of Appeal Judgement in Civil Appeal No E084 of 2021, which nullified the Sacco Societies Amendment Bill No 16 of 2018 for lack of participation by the Senate.
The National Assembly republished the Bill in compliance with the judgment of the Court of Appeal to allow for consideration by both houses.
Clause 3 of the Bill amends section 4 of the Act to provide that a person shall not be qualified for appointment as a member of the Board of SASRA if that person is an MP or an MCA or one who does not meet the requirements of Chapter Six of the constitution.
Clause 4 of the Bill amends section 20 of the Act to provide that SASRA shall submit its statement of income, expenditure, assets and liabilities to the Auditor General and not the Controller of Budget in line with the constitution. The Amendments also seek to refer to the correct citation of the Public Audit Act.
Clause 5 of the Bill amends section 24 of the Act to require an application made by a Sacco intending to transact the deposit-taking business to be accompanied by evidence that the Sacco Society meets the minimum capital requirements prescribed in regulations.
Clause 6 of the Bill amends section 27 of the Act to, among other things, provide that the registration of a Sacco Society, the license of which is revoked under provisions of the Act, shall be cancelled in accordance with section 62 of the Co-operative Societies Act.
The Bill also provides that where SASRA determines that a Sacco is conducting business in a manner that is detrimental to members or a Sacco is undercapitalized; the Authority shall impose financial penalties on the Society or any officer, director, committee member, employee or agent of the Society in such amounts as may be prescribed through regulations.
The Bill also allows SASRA to establish and operate an electronic filing system to electronically file the statutory returns and documents or other information required to be furnished to the Authority under the Act or any other written law.
