> 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/9.-sacco-societies-non-deposit-taking-business-regulations-2020.md). # 9. Sacco Societies (Non-Deposit Taking Business) Regulations 2020 Quick Link: · These Regulations became effective on 1 January 2021 after publication vide Legal Notice No. 82 of 2020. · They were a consequence of the findings of a [report of the Taskforce on the development of regulations for non-deposit taking Saccos](https://ushirika.go.ke/wp-content/uploads/2020/07/Task-Force-on-the-Development-Regulations-for-Non-Deposit-Taking-Saccos.pdf). · In the main, the Regulations seek to regulate non-deposit taking SACCOs following concerns that these SACCOs, despite not taking deposits from members of the public, posed risks to the financial system thereby necessitating a monitoring of their operations. · They expanded the mandate of the regulator, the Sacco Societies Regulatory Authority (SASRA), to also regulate these SACCOs. · The Regulations seek to improve the governance of large non-deposit taking Saccos in light of recent cases of fraud relating to such institutions. · It is however noted that there is currently a [National Cooperative Development Policy](https://www.ushirika.go.ke/wp-content/uploads/2020/07/national-co-operative-development-policy.pdf), developed in 2019, that is awaiting adoption. The Policy seeks to bring all the financial institutions under the ambit of the regulator, SASRA, including the non-deposit taking SACCOs which were not under the regulator’s ambit.\[1] This needs to be fast tracked. · In particular, the Regulations require the said Saccos to provide particularized details to SASRA within 30 days of issuance of a notice requiring such details; the core capital must not be less than 8 percent of the society’s balance sheet; submission of a three year business plan and feasibility study; submission of ‘fit and proper test form’ relating to senior management of Saccos to SASRA; independent onsite inspection by SASRA to assess the institutional infrastructure, risk management policies, internal control systems and Management Information Systems. · Some of the envisaged legislative and policy changes include: the setting up of a deposit protection scheme (SACCO Deposit Guarantee Fund) for members like those of commercial banks; establishment of the SACCO Fraud Investigation Unit; and prudential supervision of non-deposit taking SACCOs.\[2]
*** \[1] Brian Ngugi, “Kenya: New Law Set to Beef up Sacco Regulators Roles” (*allAfrica.com* March 22, 2021) <> accessed November 6, 2021. \[2] <[Microsoft Word - Press Release - 2020 Regulations requiring non-deposit taking SACCOs to be regulated by SASRA take effect.docx (kilimo.go.ke)](https://kilimo.go.ke/wp-content/uploads/2021/02/Press-Release-2020-Regulations-requiring-non-deposit-taking-SACCOs-to-be-regulated-by-SASRA-take-effect.pdf) > --- # 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 current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://cahf.gitbook.io/kenya-legal-policy-and-institutional-review/annex-f-laws-governing-financing-rental-taxation/9.-sacco-societies-non-deposit-taking-business-regulations-2020.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.