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Saccos regulator revokes licences of three societies

mwaka

Sasra chief executive John Mwaka. FILE PHOTO | NMG

The Sacco Societies Regulatory Authority (Sasra) has revoked the licences of three societies, barring them from taking deposits.

The three are Nandi Hekima, Miliki Sacco and Sukari Sacco.

Sasra said deregistering the saccos was necessary since some of them were facing business shrinkage due to membership attrition.

“Nandi Hekima, for instance, was suffering a transitional issues under conditional licensing, which we guided as an authority but had not borne fruit hence revocation,” Sasra chief executive John Mwaka told Business Daily on Wednesday.

Mr Mwaka noted Miliki Sacco which draws membership from the Orthodox Church was shrinking due to low membership while Sukari Sacco, which mostly serves staff from the Mumias Sugar Company, was destabilised by the miller’s troubles.

He said the deregistered societies had a combined 4,935 active savers and about 37, 677 inactive savers, Sh844 million in assets, Sh508 million in deposits and a loan book of Sh552 million.

Kenya’s sacco industry’s loan book grew to Sh417 billion from the last returns received, according to Sasra.

The withdrawal of deposit taking licences means these saccos will now be under the jurisdiction of the commissioner of co-operatives or they can be liquidated. Those found culpable of running a deposit-taking sacco without a licence face a Sh500,000 fine and a three-year jail term.

Sasra regulations require deposit-takers to maintain a regulatory 15 percent liquidity ratio and should file a liquidity statement monthly, detailing assets as well as the balance of liquid liabilities.