SACCO reforms in the policy and legislative environment

By Mercy Njeru

Welcome to advocacy news!

KUSCCO was established to ensure there is an enabling legislative and policy environment for the growth of SACCOs. As the umbrella organization for SACCOs, we speak and act on behalf of SACCOs in protection of their rights to operate in a more fulfilling and just business environment.

The SACCO sector has previously been under the Ministry of Agriculture, Fisheries, Livestock and Co-operatives, more specifically, the State Department of Co-operatives. However, effective September 2022, we are glad to note that the new Government will establish the Ministry of Cooperatives and SME Development. This is great news for the sector and will enhance a close collaboration of the National Government and a focused detail to matters affecting the sector. We truly thank the new Government.

The Union is actively following up on progress of the below pending issues, policies and regulations:

1.     4th Co-operative Policy (2019) “Promoting Co-operatives for Socio-Economic Transformation" Sessional Paper No. 4 of 2020 – Pending final process of Parliament and Senate Approval.

2.     Prof Zani Bill, The  Cooperative Societies (Amendments) Bill 2020- Pending Parliament and  back to Senate

3.     The Cooperative Bill,2021- Pending approval by new Cabinet, Parliament and Senate

4. Data Protection Act, 2019- constant training is being carried out by the Education and Training department. Additionally, the Research and Consultancy department assists SACCOs in policy development
5. Non Remittance for the SACCOs now stands at Sh3.4 billion as per SACCO Supervision Report 2021-we are in talks with various institutions to resolve the issue

6.     Proposed Legal Amendments to the SACCO Societies Act No. 14 of 2018 for operationalization of Deposit Guarantee Fund for the SACCO Societies in Kenya Approved by Cabinet on 12^th May, 2022- pending Parliament and senate Approval.

7.     Legal Amendments to the SACCO Societies Act No.14 of 2018 to facilitate Licensing and Regulations of Central Liquidity and Shared Services platform (SACCO Central) for the SACCO Societies in Kenya – Approved by Cabinet on 12^th May,2022- pending Parliament and senate Approval.

8.     Council of Governors – Model County Cooperatives Bill, 20... And Regulations – Pending CoG Approval

9.     Nyeri County Cooperative Societies Bill,2022 Pending Approval - County Assembly

10.  Kilifi County Cooperative Policy, 2022- Approval by County Assembly

The following is a summary of Acts and regulations affecting the sector:

1. Specified  Non- Deposit Taking SACCOs –  Provisions and New Levies
2. The market conduct regulations,2020- SASRA to customize for SACCOs
3. Guidelines on Governance of Deposit taking SACCOs (SASRA)
4. Proceeds of Crime and Anti – Money Laundering Regulations (2013) (POCAMLA)
5. Unclaimed Financial Assets Authority (UFAA)
6. Income Tax Act – Finance Bill,2022
7. The coffee Bill, 2020 and Tea Act, 2020 and regulations 2021
8. Draft crops (coffee) (general) (Amendments) regulations 2022