10. Sacco Societies (Amendment) Act, 2022

The Act seeks to amend the Sacco Societies Act 2008 to improve the governance of SACCOs which form a critical part of financing for prospective home buyers.

Quick Link: https://new.kenyalaw.org/akn/ke/act/2022/34

· Section 3 of the Bill provides that a person who does not meet the requirements of Chapter Six of the Constitution and a Member of Parliament are ineligible to serve as a board member of the Sacco Societies Regulatory Authority.

· Section 4 amends section 20 of the Sacco Societies Act 2008 to require the Authority to submit financial statements to the Auditor General and not the Controller of Budget as is currently the case.

· Section 6 which amends Section 27 of the Principal Act by providing for the alignment of revocation of licenses under the Sacco Societies Act with cancellation under the Cooperative Societies Act.

· Section 8 amends section 51 of the Act to provide that where an Authority determines that a SACCO society has violated applicable rules or acted in a manner detrimental to the interests of members or is undercapitalized, the Authority shall impose financial penalties on the society or its officers as prescribed.

· Section 9 amends the Principal Act by introducing Section 53A which provides for the establishment and maintenance of an electronic filing system by the Sacco Societies Regulatory Authority (“SASRA”) for purposes of filing statutory returns and other required documents. SASRA is expected to issue guidelines for the use and procedure of the electronic system. Implementation of an electronic filing system will greatly benefit SACCOs as there will be a transparent and accountable system from which necessary information and records can be accessed by both SASRA and the SACCOs.

· Overall, the Act seeks to strengthen and improve the governance of Saccos to ensure their continued sustenance. The Act was passed by the National Assembly on 16th June 2022 and was assented to by the President on 6th July 2022.