In this piece, we will look at the roles of the Sacco Societies Regulatory Authority (SASRA). This is a state corporation founded in 2010 to license and monitor Deposit Taking Sacco Societies in Kenya. It falls under the jurisdiction of the Ministry of Industrialization and Enterprise Development.
SASRA’s regulation ensures public trust in the Sacco sector while also encouraging Kenya’s economic growth through the mobilization of domestic savings.
The Sacco Societies Regulatory Authority is a distinguished regulator of a financially inclusive and stable SACCO industry.
SASRA’s functions and roles are shown below.
Functions of Sacco Societies Regulatory Authority SASRA
- Licensing Sacco societies that do deposit-taking operations in Kenya. This covers the issuing of licenses, the revocation of licenses, and the publication of licensed Sacco societies.
- Regulating and supervising Sacco societies in Kenya- This includes inspecting Sacco societies and enforcing actions.
- Levying contributions that Saccos should pay.
- Ensuring an even distribution of Deposit Taking SACCOs around the country to promote financial inclusion.
- Holding, managing, and utilizing the Authority’s General Fund in line with Kenyan legislation.
Read also, List of All Registered Saccos in Kenya, Contacts and Location
- The general fund includes all levy profits as well as money accrued from any other source paid for, donated to, or lent to SASRA.
- The Deposit Guarantee Fund protects member deposits. This includes a maximum of one hundred thousand shillings for each member.
- Implementing Sanctions for Noncompliance- SASRA is also empowered to levy penalties if a SACCO fails to meet standards such as capital adequacy. Such punishments include the suspension of lending and investment, the ban of obtaining further land and buildings through purchase or lease, and the prohibition of accepting additional deposits or other lines of credit.
- Asset-liability and liquidity management- SASRA is in charge of developing, reviewing, and changing the Sacco Societies’ liquidity policy on an annual basis.
- Examining the Financial Performance of SACCOs- Saccos must submit a return of the Statement of Income and Expenditure and a Statement of Financial Position reflecting the results of its operations for the prior month to SASRA by the 15th of each month for evaluation.
- Imposing Financial fines- SASRA is also authorized to levy financial penalties on a Sacco Society that fails to submit required reports and information to the Authority or submits erroneous reports and information.
SASRA Location and Contacts
Address: UAP Old Mutual Tower, 18th &19th Floor, Upper Hill Rd, Nairobi
Phone: +254 (20) 2935101
Email: info@sasra.go.ke
