The Sacco Societies Regulatory Authority (SASRA) has revoked the licenses of the B-Smart and Multiple Sacco Societies from January 23, 2025, due to non-compliance.
In a Gazette Notice published on Friday, January 24, SARSA Chief Executive Officer (CEO) Peter Njuguna explained that the two societies failed to apply for renewal of their licenses.
Njuguna also revealed that the societies also failed to meet members’ obligations, thus contravening Regulation 6 of the Sacco Societies Act.
“Every licensed Sacco is required by law at all times to display the original license or authorization certificate in a conspicuous place at their registered head offices,” Njuguna reiterated.
An image of a front office design of a sacco
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Design Source
In the notice, the SASRA CEO also listed 177 Saccos whose licenses were renewed and allowed to operate deposit- and non-deposit-taking businesses.
Deposit-taking Saccos are societies licensed to accept money from members and offer savings accounts similar to those offered by mainstream banking institutions.
Subsequently, Peter Njuguna went ahead to warn Saccos against conducting a deposit-taking business without the requisite license documents.
According to him, it is an offence punishable by prosecution under the Act for any person to conduct or undertake a deposit-taking without the necessary approval.
“Any member of the public, person, or entity who transacts or continues to transact deposit-taking Sacco business with a Sacco society or any other entity that does not have a valid license shall be doing so at their own risk,” the SARSA CEO cautioned.
“Both public and private sector companies, institutions, and entities should cease facilitating unlicensed and unauthorised entities purporting to be Sacco Societies to undertake unlawfully regulated SACCO businesses through deductions and remittances,” he added.
Additionally, regulated Sacco Societies were warned against investing members’ funds with unregulated entities, and any such existing investments should be recalled immediately.
SARSA, established in 2008, is mandated with the role of regulating, supervising, and developing the Sacco industry through the promotion of prudent practices to protect member’s interests, enhance access to financial services, and foster financial stability.
Members from the Senate Committee on Trade, Industrialization and Tourism in a meeting with sacco officials on May 21, 2024
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Parliament of Kenya