- SASRA says secondary Saccos will not offer retail services.
- Bill seeks to protect member savings through a Deposit Guarantee Fund.
- Reforms also strengthen liquidity management and interbank access
The Sacco Societies Regulatory Authority (SASRA) has pushed back against widespread misinformation surrounding the proposed Sacco Societies (Amendment) Bill, 2025, clarifying that the bill will not allow secondary Saccos to operate in the retail space.
Under the proposed law, secondary Savings and Credit Cooperatives (SACCOs) will be strictly limited to providing institutional financial services to their member organizations.
“Secondary Saccos will not be allowed to take deposits from, lend directly to, or provide retail services to individual members of the public,” SASRA stated,
The Authority has previously clarified that the proposed legislation is intended to operationalise the Deposit Guarantee Fund to safeguard members’ savings, with eligible deposits to be compensated in the event a Saccos licence is revoked.
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It also stated that the proposed reforms aim to strengthen liquidity management and enable qualifying secondary Saccos to participate in Kenya’s interbank market, subject to meeting the prescribed regulatory requirements.
The clarification comes amid growing concern over the proposed Sacco Societies (Amendment) Bill, 2025, which has been the subject of widespread misinformation claiming it would grant the government sweeping powers over members’ deposits and the management of cooperative societies.
By Frank Mugwe
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