200 Non-compliant Saccos face the axe

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Oct 24, 2017
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By Our Reporter.

Up to 200 Saccos that are non-compliant with the law will be deregistered, Sacco Review has established.
At the top of the list of Saccos that will be struck off societies register are those that have in the last three years not submitted audited annual financial results and therefore are out of compliance, Commissioner of Co-operative Development, Ms Mary Mungai said.
Speaking at Nairobi’s Crowne Plaza Hotel during the 30th Annual Delegates Meeting for Kenya Union of Savings and Credit Cooperatives (Kuscco) Limited that was also addressed by its Managing Director, George Ototo, Ms Mungai said the Co-operative movement will keep strengthening its own prudential standards to safeguard members’ funds.
Ms Mungai told the Press that Saccos’ prudential guidelines will be strengthened to help seal regulatory loopholes in the sector that holds in excess of Sh600 billion as customer deposits.
On his part, Sasra boss, Ototo said “Sasra is currently cleaning its register to get rid of Saccos that are not in compliant with the law. For instance, Co-operatives who have fallen below 10 members will be removed from the list as well as those not living up to their objectives in by-laws will lose certificates,” Ototo noted.
Mr Ototo said briefcase institutions, disguising themselves as Saccos have in the recent past made away with members’ contributions.
The Kuscco boss warned members to be on the lookout as the clock ticks closer to the General Election, she said.
“On pyramid schemes, we will keep sharing information so that we become keener. In election year is when they mostly come up to fleece Kenyans of their hard earned cash,” Mr Ototo warned.

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