Section 1 of Sacco Societies Act CAP 490B: Short title

In this Act, unless the context otherwise requires— "associate" means— (a) in relation to a company or other body corporate— (i) its non-operating holding company or its subsidiary; (ii) a...

(1) This Act shall apply to— (a) every deposit-taking business; (b) specified non-deposit taking business, in the manner specified in subsection (2). (2) For the purposes of subsection (1)(b), the...

(1) There is established an Authority to be known as the Sacco Societies Regulatory Authority. (2) The Authority shall be a body corporate with perpetual succession and a common seal and shall be...

The objects and functions of the Authority shall be to— (a) license Sacco societies to carry out deposit-taking business in accordance with this Act; (b) regulate and supervise Sacco societies; (c)...

(1) The oversight function and management of the Authority shall vest in a Board of the Authority which shall comprise— (a) the Chairperson to be appointed by the Cabinet Secretary from amongst the...

The Board shall have all the powers necessary for the performance of its functions under this Act and, in particular, shall have the power to— (a) supervise, control and administer the assets of the...

(1) The Board may appoint committees from among its own members or otherwise, to carry out such general or special functions as may be specified by the Board. (2) The Board may, by resolution, either...

(1) The common seal of the Authority shall be kept in such custody as the Board may direct and shall not be used except on the order of the Board. (2) The common seal of the Authority when affixed to...

The Authority, in consultation with the Cabinet Secretary, shall pay members of the Board such remuneration or allowances for their services and expenses as it may determine.

The conduct of the business of the Board shall be as provided in the Schedule, but subject thereto, the Board may regulate its own procedure.

(1) There shall be a chief executive officer who shall be appointed by the Board, in consultation with the Cabinet Secretary, and whose terms and conditions of service shall be determined by the Board...

(1) The Board may appoint such other officers and employees as it considers necessary for the efficient discharge of its duties and responsibilities. (2) The officers and employees appointed under...

(1) No matter or thing done by an officer or an employee of the Authority shall, if the matter or thing is done bona fide for executing the functions, powers or duties of the Authority, render the...

(1) The Authority may by order published in the Gazette, impose a levy to be known as the Sacco societies levy on the deposits held in deposit-taking Sacco societies, or on such other base as the...

(1) There is established a fund of the Authority to be known as the General Fund of the Authority which shall vest in the Authority. (2) There shall be paid into the General Fund— (a) all proceeds...

(1) The Authority may invest its funds in any securities which for the time being are authorized for trust funds or in any other securities which the Cabinet Secretary may, from time to time,...

The financial year of the Authority shall be the period of twelve months ending on the thirtieth of June in each year.

(1) The Authority shall, at least three months before the commencement of the financial year, prepare estimates of revenue and expenditure for that year. (2) The estimates prepared under subsection...

(1) The Authority shall cause to be kept proper books and records of accounts of the income, expenditure, assets and liabilities of the Authority. (2) The Authority shall within three months of the...

(1) The Authority shall within four months of the closure of the financial year, submit to the Cabinet Secretary a report on the operations of the Authority during that year. (2) The Authority shall,...

The Authority shall within four months of the closure of the financial year prepare and submit to the Cabinet Secretary a report on the operations and performance of the Sacco societies under this Act...

(1) No person shall carry out deposit-taking business within the meaning of this Act, unless such person— (a) is a Sacco society registered under the Co-operative Societies Act (Cap. 490); and (b)...

(1) A Sacco society intending to transact the deposit-taking business in Kenya shall, before commencing such business, apply in writing, to the Authority for a licence, in the prescribed form. (2) An...

(1) The Authority shall consider every application made under section 24 and may, if satisfied that the applicant meets the requirements of this Act, grant a licence to the applicant upon payment of...

(1) The Authority shall endorse on a licence granted under this Act such conditions as it considers necessary and may from time to time add, vary or substitute such conditions as it deems...

(1) The Authority may, by notice in writing to a Sacco society, revoke the licence if the Sacco society— (a) ceases to carry on deposit-taking business in Kenya or goes into liquidation or is wound...

The Authority shall cause the list of all Sacco societies to be published once every year in the Gazette and at least in one newspaper of national circulation.

All Sacco societies shall comply with and maintain at all times the minimum capital requirements as may be prescribed by the Authority.

(1) A Sacco society shall maintain such minimum holding of liquid assets of its members' deposits and borrowings as may be prescribed by the Authority. (2) Every Sacco society shall calculate the...

A Sacco society shall engage only in such business as the Authority shall prescribe.

(1) No Sacco society may open in Kenya a branch or a new place or business or change the location of a branch or the existing place of business in Kenya without the approval of the Authority. (2) A...

(1) Any member of a Sacco society may apply to the Sacco society for a loan or credit facility in writing. (2) A person who applies for a loan or credit facility under subsection (1) shall provide...

(1) No Sacco society shall grant a loan or credit facility to a member where the loan or credit facility, in the aggregate, exceeds such limit of the society's core capital as the Authority may...

(1) A Sacco society may make loans to its employees and members of its board of directors. (2) The conditions for the grant of a loan or credit facility to an employee or board member shall comply...

(1) A Sacco society shall have a first charge against deposits and share capital and upon any dividend or interest payable to a member for any debt due to the society from the member, either as a...

The treatment of members' dormant accounts shall be in such manner as may be prescribed by the Authority.

(1) The funds of a Sacco society may be invested in— (a) securities, obligations or, other debt instruments issued or guaranteed by the government or any agency of the government; (b) deposits,...

The financial year of a Sacco society shall be the period of twelve months ending the thirty-first December in each year.

(1) Every Sacco society shall keep proper books of accounts. (2) Every Sacco society shall keep accounts and records which— (a) show a true and fair state of affairs; and (b) explain all...

(1) A Sacco society shall, not later than three months after the end of each financial year, submit to the Authority, in the prescribed format. (a) an audited balance sheet, showing its assets and...

The disclosures in the financial statements of a Sacco society shall include disclosures on— (a) members, if any, who hold more than twenty percent of the share capital and deposits in the Sacco...

(1) Every Sacco society shall appoint an internal auditor who shall report to the board of directors on the internal control systems and financial matters of the society. (2) No person shall be...

(1) Every Sacco society shall, in each financial year, have an external auditor who shall be— (a) a person qualified under section 45; (b) approved by the annual general meeting of that society;...

A person shall be qualified for appointment as an external auditor of a Sacco society if that person— (a) is qualified as an auditor under the Companies Act (Cap. 486); (b) is among the list of...

(1) A Sacco society shall display, throughout the year, in a conspicuous position in every place of business, a copy of its last audited financial statements in the prescribed format. (2) A Sacco...

The annual general meeting of a co-operative society as established under the Co-operatives Societies Act (Cap. 490) shall be the supreme organ of a Sacco society.

(1) The Authority shall be responsible for the regulation and supervision of Sacco societies to which this Act applies. (2) Without prejudice to the generality of subsection (1), the Authority...

(1) The Authority may, at any time and from time to time, and shall, if so directed by the Cabinet Secretary, cause an inspection to be made by any person authorized by the Authority in writing of any...

(1) If, at any time, the Authority has reason to believe that— (a) the business of a Sacco society is being conducted in a manner contrary to or not in compliance with the requirements of this Act or...

Where the Authority determines that a Sacco society conducts its business in a manner contrary to the provisions of this Act or of any regulations made thereunder or any other Act or in any manner...