By Kephas Ayiecha.
Savings and Credit Co-operative Societies (Saccos) faced tough times ahead if the government goes ahead with plans to effect amalgamation of financial institutions.
One such Sacco is the Trans National Times Sacco Society (TNTs) based in Kitale which has an increased financial base of Sh1.1billion.
Speaking during the Sacco’s Annual Delegates Meeting (ADM), the Kenya Union of Savings and Credit Co-operative (KUSCCO) Manager in charge of Rift Valley, Robert Owino said that once amalgamated, Saccos will have to work hard to remain afloat.
He said that under the Sacco Societies Regulatory Authority (SASRA), any Sacco whose financial position reaches billions of shillings must comply with a threshold of 8 in ratios between the institutional capital and assets.
“You will have to tighten your belts since if the financial institutions are amalgamated then the minimum ratios might be increased,” he said.
He noted that TNT Sacco is far much below the regulators minimum requirement and would mean it joins another which has fulfilled the regulator’s minimum requirement.
Owino explained that the financial institutions to be amalgamated under one regulator include SASRA, Retirement Benefits Authority (RBA), Capital Markets Authority (CMA), Insurance Regulatory Authority (IRA) and Central Bank of Kenya (CBK).