Kenya: The SACCO Societies Bill 2007

Publication Date: Aug 2007
Published by: Republic of Kenya
Document Type: Other (PDF)

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What are the norms that regulate the functioning of savings and credit cooperatives in Kenya?

This bill addresses the licensing, regulation, supervision and promotion of savings and credit cooperative societies (SACCOs) in Kenya. The bill is divided into the following sections:

• Part I, Preliminary, contains information about the short title and commencement of the bill, its interpretation and application.
• Part II, The SACCO Societies regulatory Authority, discusses the establishment, objects and functions of the “Authority” as well as the composition and powers of the “Board”, remuneration of staff members, the annual audit, etc.
• Part III, Licensing of SACCO Societies, deals with the application for and conditions of a license and its revocation.
• Part IV, Governance of Licensed SACCO Societies, presents information about capital requirements, liquid assets, prohibited businesses, procedures for loans and savings, disclosure requirements, auditing and accounts.
• Part V, Regulation and Supervision of Licensed Societies, lays down norms for their regulation and supervision, prescribes supervisory enforcement actions, and also prescribes rules regarding information sharing.
• Part VI, The Deposit Guarantee Fund, discusses its establishment, sources and functions and also provides information about the Board of Trustees.
• Part VII, Miscellaneous, provides information about declaration of holidays, default by officers, penalties, transitional provisions, etc.