The Sacco Societies Regulatory Authority (SASRA) released a new Model Complaints Handling Policy for regulated Saccos to strengthen the complaints management framework within the sector, ensuring alignment with best practices and regulatory requirements.
According to SASRA the policy will provide a standardized and adaptable approach for Saccos to address member complaints effectively, transparently, and fairly.
SASRA added that the policy should be treated as an addendum to the Complaints Management Guidelines issued by the Authority in August 2023.
The development of the Model Policy followed an extensive stakeholder consultation and intends to provide practical guidance and support, particularly for Saccos requiring assistance in establishing or enhancing their complaints management systems.
The authority further reiterated that Saccos with existing complaints handling policies are required to review and align their current policy with the provisions of the new Model Policy.
“Where gaps exist, please update your policy accordingly to ensure full compliance,’ said CPA Peter Njuguna, SASRA CEO.
Njugunu said that Saccos are required to complete review and alignment of their policies within three months and to submit confirmation of compliance, together with the updated policy, to SASRA.
“Under the model, the Sacco should be committed to handling member complaints promptly, fairly, and transparently.” He said
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The model policy outlines how the Sacco manages complaints to ensure member issues are resolved within clear timeframes and in compliance with regulatory requirements.
It establishes a structured framework for receiving, handling, and resolving complaints, with key objectives of ensuring timely and effective resolution of complaints and empowering members by providing clear education on their rights and the complaint process. It also enhances efficiency through technology, leveraging a CRM system and secure online portal for streamlined complaint tracking, resolution, and reporting.
The policy is expected to apply to all aspects of Sacco operations and governs the handling of complaints from members and other stakeholders regarding its products, services, staff, or the complaints handling process itself. It covers the full complaint resolution process, from initial receipt to final resolution, including escalation and follow-up procedures.
According to Njuguna, complaints addressed under the policy may relate to; financial products and services, customer service experiences, staffs conduct and any other operational concerns affecting members or stakeholders
To maintain relevance and effectiveness, SASRA noted that the policy will be reviewed every three years to ensure alignment with evolving industry standards, regulatory requirements, and member needs.
This policy demands that Sacco officials are required to uphold Professionalism and Integrity, Fairness and Objectivity, Confidentiality, Transparency and Clear Communication, and Ethical Behavior and Anti-Corruption Measures the during all interactions with complainants.
“Staff must rigorously adhere to confidentiality requirements under the Data Protection Act, 2019, and internal SACCO policies. Staff involved in the complaints handling process will receive training on data protection principles, ensuring they understand the importance of data privacy and are equipped to handle personal data in accordance with legal requirements and best practices,’ states the document.
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According to the new policy, any complaint lodged shall take 21 days to resolve. This includes up to 14 working days for investigation of the issue and an additional 7 days to finalise and communicate the outcome, while acknowledgement will be within the first three days.
The policy also states that members may lodge complaints through any convenient channels such as the online portal, in person, by phone, or email.
“A Sacco can also utilize a Customer Relationship Management (CRM) system to track all complaints received to ensure no complaint falls through the cracks and allows for efficient tracking and management.” Reads part of the policy
For Saccos without a dedicated CRM system, they can effectively manage complaints using structured manual processes with basic automation tools like Excel.
“The transition to digital complaints management should be gradual and tailored to each Sacco’s operational capacity,” states the policy.
A Sacco is required to acknowledge receipt of a complaint within three working days, investigate the issue thoroughly within 14 days and provide a final response and resolution within 21 calendar days from the date a complaint is received, in line with regulatory guidelines.
If the complaint is noted solved within the 21-day timeframe due to its complexity or other extenuating circumstances, the Sacco will inform the complainant before the deadline expires.
Saccos are also required to establish clear escalation pathways within their management structure to ensure complex or unresolved complaints receive swift attention at higher levels.
Complaints directly implicating Sacco Board members, senior management, or key officials in misconduct, conflicts of interest, corruption, or unethical behavior must be escalated directly to SASRA. “Such cases are excluded from internal processes to prevent conflicts of interest or retaliation against complainants,” states the policy.
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If a member is dissatisfied with the outcome provided by SASRA or another regulatory body, they have the option of pursuing further independent review such as Alternative Dispute Resolution (ADR) and Judicial Review (Level 5).
Complaints involving allegations of corruption, fraud, unethical conduct, or malpractice at high Sacco levels are handled under whistleblowing provisions and are thus excluded from standard internal complaints procedures.
Complaints involving criminal acts (e.g., fraud, theft, money laundering, or terrorism financing) must be immediately reported to SASRA or the Financial Reporting Centre on claims related to crimes under POCAMLA Act, 2019.
On the member education and engagement, Saccos are required to use multiple channels to disseminate information on member rights, the complaints procedure, and updates to this policy.
“At least once a year, the Sacco should hold an in-person member workshop or forum focused on member rights, responsibilities, obligations, and available feedback mechanisms. During these sessions such as Annual General Meeting, members will be educated on how to file complaints, the expected timelines, and how the SACCO uses their feedback to improve.” Reads policy
In addition, Saccos must track and report complaints data quarterly to SASRA, including total complaints received and resolution status. “Failure to submit reports on time may result in regulatory penalties,” the model policy states.
By Juma Ndigo
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