By Munene Maina
Deposit Taking Saccos will have to realign their books of account to meet new taxation requirements.
The Sacco Societies Regulatory Authority (SASRA) has amended the Sacco Societies Deposit Levy.
Subject to a maximum levy of Sh10 million per annum, deposit-taking Saccos will now have to comply with new rates in paying annual levy.
The rates are set out based on the total deposits held by the society as indicated in the last audited financial statements of the society.
In a legal notice number 51, the regulator in exercise of the powers conferred by section 15 of theSacco Societies Act gave a new Order 2018 after amendment.
Through the order Saccos will pay 0.125 per cent on deposit levy from January, 2018 to December, 2018 and 0.15 per cent from January, 2019 to December, 2021.
From January 2022, Deposit-Taking Saccos will pay deposit levy at a rate of 0.175 per cent.
The order dated the 7th February, 2018 was signed by John Mwaka, SASRA Chief Executive Officer.
The levy forms the primary source of funding for the authority’s core function of regulation and supervision of deposit taking Sacco societies.
According to the regulator it is also an investment by the Saccos which also benefit members through ensuring there is a stronger regulatory authority for the growth and development of the Sacco subsector and training on regulatory and policy issues to enhance compliance.
By having an able regulator it promotes business practices that protect member rights and privileges and enhanced public confidence on saccos, a key asset for growth of Sacco business.