The Sacco Societies Regulatory Authority (SASRA) has issued licenses to 355 Savings and Credit Cooperative Societies(SACCOs), according to a list published in the Kenya Gazette Notice Vol. CXXVII—No. 15, dated 24th January, 2025.
This 2025 list is made up of 178 SACCOs that will be permitted to engage in deposit-taking business, up from 176 SACCOs in 2024. Also licensed will be 177 SACCOs to undertake Back Office Service Activity(BOSA) only on non-deposit taking business, down from 181 BOSAs in 2024.
SASRA has also revoked the permits of two Nairobi-based SACCOs namely B-SMART Sacco Society Limited and Multiple Sacco Society Limited. The reasons for these revocations, according to the regulator, is failure by both entities to apply for renewal of the authorization and their inability to meet members and compliance obligations.
On 21st September 2017, the Central Bank of Kenya(CBK) granted Multiple Sacco Society Limited, then a non-deposit taking Sacco, as a third party Credit Information Provider(CIPs). In January 2023, B-Smart got into trouble when there was a panic withdrawal that overrun the Society. This followed its inability to offer loan services to members nor refund their savings. B-Smart is said to have suffered the negative effects of the COVID-19 pandemic after its members, composed mostly of traders operating from Nairobi’s Gikomba market were affected by the pandemic as well as frequent fire outbreaks at their business premises.
Third-party CIPs are providers of credit information other than commercial banks, microfinance banks and deposit-taking savings and credit co-operative societies which are mandatory subscribers.
Among the new DT Saccos that have joined the industry include Qona Sacco Society Limited, based at Safaricom Care Centre, Waiyaki Way, Westlands, Nairobi.
In the latest Gazette Notice, SASRA CEO Peter Njuguna warns that it is an offence for any person to conduct or undertake a deposit taking Sacco business and or specified non-deposit taking Sacco business, with any Sacco Society or entity, unless the Sacco Society has been duly licensed or authorized by the Authority.
Those who transact or continue to transact deposit taking Sacco business or specified non-deposit taking Sacco business, with a Sacco society or any other entity which does not have a valid license or authorization for the Authority, shall be doing so at his/her own risk and peril.
The law requires that every licensed or authorized Sacco Society is required by law to all times, display the original license or authorization certificate (as the case may be) in conspicuous place at their registered Head Offices, and a copy license or authorization certificate (as the case may be) at all other licensed or authorized branches and places of business.
SASRA warns public and private sector companies, institutions, and entities to cease and desist from facilitating unlicensed and unauthorized entities purporting to be Sacco Societies, to undertake illegal regulated SACCO businesses through deductions and remittances, and/or by providing electronic and digital channels and conduits to undertake such illegal regulated SACCO businesses.
With many SACCOs making provisions against lost investments pumped into the unregulated Central Finance Facility, run by the financially-crippled Kenya Union of Savings and Credit Cooperative Union(KUSCCO), the regulator cautions SACCOS against placing and/or investing members’ funds in the deposits of and/or equities of any unregulated entity. SASRA adds that any such existing placements or investments should be recalled forthwith.
