Member deposits in savings and credit co-operative organisations (Saccos) will finally be insured if Parliament approves proposals to create a special fund to protect depositors’ cash if an institution goes bust.
In proposed changes tabled in Parliament by Majority Leader Kimani Ichung’wah, the State aims to create a Deposit Guarantee Fund (DGF) to act as an insurance policy for reimbursing Sacco depositors for their losses up to a certain limit, following commercial banks that already operate a similar scheme.
