Section 50 of Sacco Societies Act CAP 490B: Powers of the Authority to advise and direct

(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 of any regulations made thereunder or in any manner detrimental to or not in the best interest of its members or members of the public, or
(b) a Sacco society, any of its officers or any other person participating in the management of the society is engaged in any practice likely to occasion a contravention of any of the provisions of this Act or any regulations made thereunder, or any other Act, the Authority may—
(i) give advice and make recommendations to the Sacco society with regard to the conduct of its business generally;
(ii) issue directions regarding measures to be taken to improve the management or business methods of the society or to secure or improve compliance with the requirements of this Act, any regulations made thereunder or any other written law or regulations;
(iii) in any case to which paragraph (b) applies, issue directions to the Sacco society, officer or other person to cease such practice;
(iv) appoint a person, suitably qualified and competent in the opinion of the Authority, to advise and assist the Sacco society generally or for the purposes of implementing any directions under subparagraphs (ii) and (iii).
(2) The advice of a person appointed under subsection 1(b)(iv) shall have the same force and effect as a direction made under subsection 1(b) (ii) and (iii) and shall be deemed to be a direction of the Authority under this section.
(3) The Authority shall, before issuing a direction under subsection (1), serve upon the-Sacco society, officer or other person, a notice of such intent specifying the reasons therefor and requiring the Sacco society, officer or other persons, within such period as may be specified in the notice, to show
cause why such direction should not be issued.
(4) A Sacco society which receives a direction under this section shall comply with the direction within such period as may be specified in the direction and, if so required, shall produce evidence that it has done so.
(5) The Authority may issue directions to a Sacco society generally, and where appropriate provide exceptions to those directions to be detailed at time of issuance for the better carrying out of its functions under this Act and in particular, with respect to—
(a) the prudential standards to be adhered to by a Sacco society in the conduct of its business in Kenya; and
(b) regulations to be adhered to by Sacco societies in order to maintain a stable and efficient deposit-taking Sacco movement and financial system.
(6) A person who fails to comply with any direction under this section commits an offence and shall, in addition to the penalty prescribed under this Act, be liable to such additional penalty as may be prescribed for each day or part thereof during which the offence continues.
(7) The Authority may impose minimum standards on significant members and officers of a Sacco society as prescribed.

More Sections

Section 51 - Supervisory enforcement actions

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...

Section 52 - Powers of the Authority to intervene in management

(1) Where the Authority takes an enforcement action under section 51 it may— (a) appoint a person to manage the affairs of the Sacco society and to exercise all the powers of the society to the...

Section 53 - Collection and furnishing of information to the Authority etc.

(1) The Authority or any person officially authorized in that behalf by the Authority may, by notice in writing, require any person to furnish to the Authority or to the authorized person, within such...

Section 53A - Application of Information and Communications Technology

(1) The Authority may establish and operate an electronic filing system for the purposes of electronic filing of the statutory returns and documents or other information required to be furnished to...

Section 54 - Publication and sharing of information

(1) The Authority or the Cabinet Secretary, as the case may be, may publish in whole or in part, at such times and in such manner as it or he thinks fit, any information furnished to it or him under...

Section 55 - Establishment of the Deposit Guarantee Fund

(1) There is hereby established a Fund to be known as the Deposits Guarantee Fund. (2) The Deposit Guarantee Fund shall vest in a Board of Trustees appointed under section 56. (3) The moneys...

Section 56 - The Board of Trustees

(1) The Board of Trustees shall consist of— (a) the Chairperson who shall be elected from among the members appointed under subsection (2)(b) and (f); (b) the Chairperson of the Board of the...

Section 57 - Remuneration etc, and conduct of affairs of Board of Trustees

(1) The Board of Trustees shall pay its members such remuneration or allowances for expenses out of the Deposit Guarantee Fund as it may determine after consultation with the Cabinet Secretary. (2)...

Section 58 - Sources of the Deposit Guarantee Fund

The Deposit Guarantee Fund shall consist of— (a) moneys contributed to the Deposit Guarantee Fund by Sacco societies in accordance with section 60; (b) income investment interest accruing to the...

Section 59 - Protection of deposits

(1) The Deposit Guarantee Fund shall provide protection for members' deposits, but not shares, up to an amount of one hundred thousand shillings in respect of each member. (2) The amount being the...

Section 60 - Contribution to the Deposit Guarantee Fund

(1) Every Sacco society shall be a contributor to the Deposit Guarantee Fund and shall pay into the Deposit Guarantee Fund such annual amount, and at such times, as the Board of Trustees may determine...

Section 61 - Annual report

The Board of Trustees shall, within three months after the close of each financial year, submit to the Cabinet Secretary a report on the operations of the Deposit Guarantee Fund for that year.

Section 62 - Declaration of holidays

Where the Authority considers that it is in the public interest that all Sacco societies, or a particular Sacco society should remain closed on a day which is not a public holiday, the Authority may,...

Section 63 - Orders by the High Court

The High Court may, on application made ex-parte by the Authority or a statutory manager or liquidator, if it considers it to be in the interest of the members of a Sacco society, make an order— (a)...

Section 64 - Default by officers

Any officer of a Sacco society who fails to— (a) take all reasonable steps to secure the compliance of the Sacco society with this Act or regulations made under this Act; (b) take all reasonable...

Section 65 - Miscellaneous offences

Any officer of a Sacco society who wilfully— (a) with intent to deceive, falsifies any books of account, report, statement, record or other document of the society; (b) signs, issues, publishes or...

Section 66 - General penalty.

(1) Where any Sacco society or other person contravenes any of the provisions of this Act or regulations made under this Act— (a) if it is a body corporate, it shall be guilty of an offence and...

Section 67 - Application of the Co-operative Societies Act, 1997

(1) For greater certainty, the provisions of the Co-operative Societies Act (Cap. 490) shall apply to a Sacco society carrying out deposit-taking business under this Act with respect to any matter, to...

Section 68 - Regulations

(1) The Cabinet Secretary shall, in consultation with the Authority, make regulations generally for the better carrying out of the provisions of this Act. (2) Despite the generality of subsection...

Section 69 - Transitional provisions

A Sacco society which at the commencement of this Act, is carrying out deposit-taking business to which this Act applies shall, within twelve months from the date of commencement, or such shorter...

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