The non-withdrawable depositing taking (NWDT) Savings and Credit Co-operatives (Saccos) shall now be required to pay annual regulatory fee to the country’s Sacco Regulator, the Sacco Society Regulatory Authority (SASRA) as they fully come under its purview.
According to the November Legal Notice by Sasra the rate of the annual Sacco Societies Levy will be 0.10 per cent for the first year effective January 1, 2024 to December 31, 2024.
The Levy will later increase to 0.13 per cent from January 1, 2025 to December 31, 2025 in the second year of its regulation; thereafter to 0.14 per cent in the third year from January 1, 2026 to December 31, 2026; and finally to 0.15 per cent in the fourth year from January 1, 2027 until reviewed.
Sasra has directed that the Saccos shall be required to pay the Regulatory Levy based on the total non-withdrawable deposits held by the Sacco society as indicated by the audited financial statements of the Sacco society for the immediately preceding financial year, and that the maximum levy payable shall not exceed Ksh6 million.
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“The levy payable by a Sacco society under this Order in the year on which the Sacco society has been issued with an authorisation certificate under regulation 5 of the Sacco Societies (Non-Deposit Taking Business) Regulations, 2020, shall be the equivalent to the pro-rated amount of the levy payable with effect from the month following the month of the issuance of the authorisation certificate,” said Sasra in the November Legal Notice No. 178 and endorsed by the Authority’s Chairperson Jack Ranguma and Chief Executive Officer (CEO) Peter Njuguna.
The rate that the non-deposit-taking Saccos will be paying is lower compared to the 0.175 per cent levy that the larger deposit-taking Saccos pay since January 2022 and which hasn’t been reviewed to date.
The NWDT Saccos will now be required to pay the Levy to the Authority not more than thirty days after the assessment and after the Authority has served the Sacco society with a written notice of the payment of the levy.
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“The rate of the levy was arrived at following engagements with key stakeholders, in particular, the Saccos themselves as well as National Co-operative Organisations, the Ministry of Cooperatives and Micro Small and Medium Enterprises and peer financial regulatory institutions,” said Sasra.
Sasra was traditionally supervising deposit-taking Saccos since 2010 while the rest (the NWDT Saccos) were under the Commissioner for Co-operatives. However, Sasra’s mandate was in 2020 expanded to start supervising Saccos with non-withdrawable deposits of at least Ksh100 million.
The 0.1 percent regulatory levy capped at a maximum of Ksh6 million is a discount compared with the 0.175 percent that is paid by deposit-taking Saccos on their total deposits subject to a maximum of Ksh10 million.
During the year ended December 2022, the sum of Ksh522.59 Billion was held by the DT-Saccos as deposit liabilities is distributed as Fixed Deposits (savings) which amounted to Ksh21.02 Billion; Withdrawable Deposits (savings) which amounted to Ksh83.78 Billion; and Non-Withdrawable Deposits (savings) which amounted to Ksh417.80 Billion.
The sum of Kshs 97.86 Billion were being held by the NWDT-SACCOs on the other hand was composed of only the non-withdrawable deposits.
By Staff Reporter
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