The Sacco Societies Regulatory Authority (SASRA) has urged Saccos to develop new savings and credit products tailored to the changing needs of members, a move that will greatly reducing dormant accounts.
SASRA, in a report released on Wednesday, noted that reactivation of dormant accounts should be the top priority for Saccos that seek to boost membership in the current difficult economic environment.
The regulator noted that the slow pace of member growth is raising alarm within Saccos and warned that the sector could struggle to maintain a healthy flow of deposits.
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“The rate at which regulated SACCOs are recruiting new members or reactivating dormant members remains slower than the rate at which existing members are becoming dormant,” the report read.
In the report, dormant Sacco memberships surged by 18.6 per cent to 1.45 million last year, reflecting the economic hardships Kenyans are facing and deepening concerns over the future of cooperatives.
By Vostine Ratemo
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