> For the complete documentation index, see [llms.txt](https://cahf.gitbook.io/kenya-legal-policy-and-institutional-review/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cahf.gitbook.io/kenya-legal-policy-and-institutional-review/annex-f-laws-governing-financing-rental-taxation/12.-cooperative-societies-act-no.-12-of-1997.md).
# 12. Cooperative Societies Act, No. 12 of 1997
The law provides for registration of Cooperative societies, which are then later licensed as SACCOs and which provide part of loan financing for housing.
·
Quick Link:
This statute is important given that all Sacco societies are first registered as cooperative societies, and then apply to SASRA for a licence to operate a Sacco. Accordingly, Sacco societies are also regulated under the Cooperative Societies Act and specifically are under the Commissioner of Cooperatives who supervises their activities.
· Section 67 of the Sacco Societies Act provides that the Cooperative Societies Act 1997 apply to deposit-taking Sacco society with respect to any matter except where such a matter is provided for in the Sacco Societies Act 2008. Section 4 provides for principles guiding the establishment of cooperative societies while section 5 of the Act provides for essentials for registration.
· Sections 43 and 44 respectively restrict the giving of loans and borrowing monies from non-members except after a resolution by members and allowance by the society’s by-laws.
· Cooperative societies help mobilize capital for prospective home purchases in a market where mortgages from commercial banks represent only a tiny fraction of total funding.
· However, the powers vested in the office of the Commissioner for Cooperative Development appear excessive with the potential of slowing the growth of cooperatives and interfering with cooperative societies’ principles on ‘‘autonomy and independence’’, democracy of cooperatives and democratic control of cooperatives by their members.
· Further, the Act is yet to be reviewed to conform to the Constitution of Kenya 2010 which devolved some functions such as regulation of cooperatives to the county governments.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:
```
GET https://cahf.gitbook.io/kenya-legal-policy-and-institutional-review/annex-f-laws-governing-financing-rental-taxation/12.-cooperative-societies-act-no.-12-of-1997.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `build a script that syncs our docs to a CMS` lets GitBook tailor the answer to that use case.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
