Saccos Laws To Be Revised.

The government is revising the outdated policies guiding the conduct of non-deposit taking savings and credit cooperative societies.

Industry, Trade and Co-operatives Cabinet Secretary Peter Munya will set up a task force to draft a new legislation for the segment. Deposit taking saccos are those that mobilise savings from their members. The deposits are strictly utilised as collateral for credit facilities advanced to such members.

In a Gazette notice published last Friday Mr Munya picked 10 experts from the sector to formulate the new policy.

“It is notified that the Cabinet Secretary for Industry, Trade and Co-operatives, intends to make regulations pursuant to section 3 (2) of the Sacco Societies Act, 2008 as read with Section 68 (1) thereof: 1. Specifying the non-deposit taking business to which section 3 (1) (b) of the Sacco Societies Act, 2008 shall apply; and 2. Prescribing measures for the conduct of the specified non deposit taking business under section 3 (1) (b) of the Sacco Societies Act, 2008,” said the CS in the notice.

“Consequently, it is further notified that the Cabinet Secretary for Industry, Trade and Co-operatives has constituted a taskforce to develop the regulations under section 3 (2) of the Sacco Societies Act, and appointed the persons listed in the schedule hereunder to be members of the taskforce with the mandate to formulate the regulations— (a) specifying the non-deposit taking business to which section 3 (1) (b) of the Sacco Societies Act, 2008 shall apply; and (b) prescribing measures for the conduct of the specified non deposit taking business under section 39 (1) (b) of the Sacco Societies Act, 2008.”

 Peter Njuguna will be the convenor of the taskforce,he is currently the  head of Sacco supervision at Sacco Societies Regulatory Authority.