Home ECONOMY SASRA revokes license of 3 SACCOs

SASRA revokes license of 3 SACCOs

by biasharadigest

The Sacco Societies Regulatory Authority (SASRA) has revoked the licenses of Nandi Hekima SACCO, based in Kapsabet, Sukari SACCO in Mumias and Miliki SACCO in Nairobi.

Therefore, these three financial co-operatives will cease offering Front Office Service Activity(FOSA) services and resort to back-office operations.

Further, the industry regulator has also put 12 more Deposit-Taking Savings and Credit Co-operative Societies(SACCOs) on a watchlist. This is for a period covering the next six months.

This list includes Ainabkoi, Goodhope, Jitegemee, Kenya Midland, Orient, Uchongaji, Rachuonyo Teachers, Nyamira Teachers, Stake Kenya, Wevarsity, Telepost and Jumuika Sacco Society Limited.

The full list of all the 174 Deposit-Taking SACCOs authorized to conduct deposit-taking business in 2020, has been published in the Kenya Gazette Notice No. 176, dated 21st January 2020.

Liquidation

In November, 2019, the Acting Commissioner for Co-operatives Development Mr. Geoffrey Njangombe moved in with liquidators into Moi University SACCO, to recover cash belonging to members of this society.

Moi University SACCO failed to meet the required financial ratios. The lack of cash to settle its obligations led to initiation of the liquidation process, now nearing its tail end.

The three DT SACCOs whose licenses have been withdrawn joins the likes of Moi University, Transcom, Ufundi, Maono Daima, Greenhills and Nest Sacco Society Limited- all who have either shut their operations or reverted to back office.

New players into the deposit-taking business in 2019 included Good Faith, Nexus, Nyamira Sacco, Stawisha, the Apple and Kolenge Tea Society Limited in Nandi Hills.

Others were Azima, Koru, Mwingi Mwalimu and Kencream-which draws the bulk of its members from staff of New Kenya Co-operative Creameries ( New KCC)Limited.

Miliki Sacco, which was on a 12 months extended license in 2019, has had its license revoked.

While Mombasa-based Jitegemee Sacco Society was ordered by the High Court to cease deposit-taking business and revert to back-office operations, it is back to business but still on a restricted license from 2019.

Nitunze Sacco, previously known as Mumias Outgrowers and Nandi Hekima Sacco Society Limited, have shut down.

Interim license

Moreover, Rachuonyo Teachers Sacco, which got a full license in 2019, appears to have gone back to the hole and is now again on a temporary permit.

Frequent occupants of the temporary permits club include Comoco, Jitegemee, Kenya Midland and Nanyuki Equator.

Others are Orient, Rachuonyo, Telepost, and Uchongaji Sacco Society Limited, situated in Mombasa County.

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