Chief Executive Officers (CEOs) and Chief Finance Officer or Finance Manager (CFO or FM) of Savings and Credit Cooperative Organisations (SACCOs) must now sign audited financial statements alongside authorized board signatories, a move aimed at cementing personal and collective responsibility for financial reporting in the cooperative sector.
The Sacco Societies Regulatory Authority (SASRA) announced the requirement during a virtual training attended by more than 1,000 officials from regulated SACCOs nationwide. The session provided a step‑by‑step guide to preparing and submitting audited statements in line with the Sacco Societies Act, deposit‑taking regulations, and International Financial Reporting Standards (IFRS).
Acting SASRA Chief Executive Officer David Amiani Sandagi said compliance with the IFRS is non‑negotiable, adding that audited financial statements remain the primary instrument through which regulators and members assess the true financial position, performance, and sustainability of SACCOs.
“High‑quality financial reporting is fundamental to protecting members’ funds and maintaining confidence in the SACCO movement. Weak or inaccurate accounts undermine governance and expose members to significant risk,” Sandagi said.
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SASRA underscored that requiring CEOs and CFOs or Finance Managers to sign audited accounts closes accountability gaps by formally affirming management’s responsibility for complete, accurate, and fair presentation of the SACCO’s finances, in tandem with the board of directors.
The measure is intended to entrench transparency and sound governance in a subsector that holds billions of shillings in members’ savings and remains central to financial inclusion.
Officials walked participants through the end‑to‑end process of audit preparation, from proper maintenance of books of account to audit engagement, approval, and statutory submission while emphasizing compliance timelines, mandatory schedules, disclosures, and supporting documentation required by the regulator.
SASRA cautioned that failure to submit audited financial statements within the stipulated timelines will attract regulatory sanctions, including penalties and other supervisory actions. The regulator reaffirmed consistent enforcement of compliance to promote the safety and soundness of regulated SACCOs.
The training also addressed IFRS application within SACCO operations, clarifying common areas of misinterpretation such as loan impairment, asset valuation, revenue recognition, and financial disclosures. SACCOs were urged to strengthen internal controls, build finance team capacity, and engage qualified auditors to ensure robust compliance.
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Beyond meeting regulatory thresholds, SASRA noted that transparent and credible financial reporting sharpens internal decision‑making and builds member trust, enabling SACCOs to demonstrate how savings are managed and empowering members to hold leadership accountable.
The virtual training is part of SASRA’s ongoing capacity‑building drive to improve governance and professionalism across the SACCO subsector. As the sector evolves amid growing regulatory and financial complexity, SASRA said it will remain vigilant in enforcing standards that protect members’ interests and strengthen the long‑term sustainability of cooperative societies.
By David Kipkorir
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