The Savings and Credit Cooperative Societies that are yet to meet the guidelines governing the sector risk imminent closure.
Commissioner of Cooperatives Geoffrey Njang’ombe says the stringent measures recently rolled out will restore order while ensuring that depositors are not defrauded of their hard-earned investments to unscrupulous players in the multi-million dollar sector.
The sector regulator confirms that thousands of Kenyans who have invested in SACCOs have lost their savings to poorly run societies despite promises of better returns.
Njang’ombe who spoke during Hazina Sacco annual general meeting says a number of saccos operating, for instance, without fosa accounts have run into mega losses triggering their collapse, leaving thousands of Kenyans distraught.
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According the commissioner the regulator has asked state agencies dealing with fraud to swing into action and weed out those flouting regulations guiding the sector.
Although the passage of the finance bills may see lending institutions increase their interest rate on lending Hazina Sacco leadership says it’s reluctant to institute the said changes.
During the AGM members sought to have regulator protect Saccos from excessive taxation as this is crippling Sacco development.
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