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LAW
ASK THE LAWYER
With the influx of new SACCOs, how can I know if the SACCO I I am a delegate of a giant SACCO that has been
am a member of is legit? misappropriating funds of the members. I would like to
know how I can go about challenging the just concluded
Brian Mboya, South C, Nairobi election of directors in office, in fight of transparency in the
SACCO.
Dear Mboya,
Joseph Ngalu, Nairobi
Section 11 (1) of the Co-operative Societies Act, cap 490 Laws
of Kenya provides for evidence of registration.“A certificate Dear Ngalu,
of registration or of a provisional registration signed by
the Commissioner shall be conclusive evidence that the As a law abiding citizen, you are required to report
society therein mentioned is duly registered or provisionally to the police any criminal acts which come to your
registered, unless it is proved that such registration of the attention. Therefore I would urge you to report these
society has been cancelled or has been terminated.” allegations to the authorities for them to investigate.
Also your concerns can be raised to members at your
It is also prudent to join a SACCO whose objectives align with AGMs.
your long term financial goals and whose membership is
known to you. From the existing members you will also learn I am a member of Ekeza SACCO that was recently
of the members satisfaction or otherwise. deregistered by the Commissioner of Co-operatives.
What laws are there protecting us as members to be
ii) What laws are there to protect Kenyans from fraudulent compensated our dues?
people posing as SACCOs?
Susan Mureithi, Kiambu
All SACCO’s and their officials operate under the laws
of Kenya. The law regulating SACCOs is the Co-operative Dear Mureithi,
Societies Act which is an act of parliament relating to the
constitution, registration and regulation of co-operative The Commissioner will investigate and make findings.
societies and for purposes incidental thereto. This law Based on the findings, the SACCO may be liquidated.
provides and regulates the officials and their duties to the The law makes provisions for distribution of the assets
SACCO. after liquidation.
Any criminal acts are also dealt with under the appropriate The Co-operative Societies Act also provides for the
penal laws. Power to surcharge officers of co-operative society.
iii) How can I tell if my SACCO is abiding to the laws of the
Regulator and paying their operational permits?
You can conduct a search with the Registrar of Societies to
ascertain whether your SACCO is abiding to the rules of the
regulator. As a member of the SACCO, you can also visit the
offices and request to see the permits and licences the SACCO
is required to have.
Jackline Omolo,
Advocate of the High Court of Kenya
SACCO Star Magazine |67
