Sacco Societies Act Cap 490B in Kenya

This Act may be cited as the Sacco Societies Act.

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 subsidiary of its non-operating holding company; (iii) a holding company of its subsidiary; (iv) any...

(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 Cabinet Secretary may make regulations— (a) specifying the non-deposit taking business to which...

(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 capable, in its corporate name, of — (a) suing and being sued; (b) taking, purchasing or otherwise...

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) hold, manage and apply the General Fund of the Authority in accordance with the provisions of this...

(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 members appointed under paragraph (e); (b) the Principal Secretary to the Treasury or his...

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 Authority in such manner and for such purposes as would best promote the objects and functions for...

(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 generally or in any particular case, delegate to any committee of the Board or to any member,...

(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 a document and duly authenticated shall be judicially and officially noticed and unless and until...

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 in the instrument of appointment or otherwise in writing from time to time. (2) No person shall be...

(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 subsection (1) shall be remunerated in such manner and at such rates, and shall be subject to such...

(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 officer or employee so acting, personally liable for any action, claim or demand. (2) Subsection (1)...

(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 Authority may determine in the case of Sacco societies carrying out non-deposit taking business...

(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 of the levy; (b) such moneys or assets as may accrue to or vest in the Authority in the course of...

(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, approve. (2) The Authority may place on deposits with such bank or banks as it may determine, any moneys...

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) shall include provision for— (a) salaries, allowances and other charges in respect of the...

(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 closure of the financial year submit to the AuditorGeneral (a) a statement of income and expenditure...

(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, after submission of the report to the Cabinet Secretary under subsection (1), publish the report in...

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 during that year.

(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) holds a valid licence issued under this Act. (2) A person who contravenes the provisions of this...

(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 application under subsection (1) shall be accompanied by— (a) a copy of the certificate of...

(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 the prescribed fee. (2) The Authority shall upon the payment by the applicant of the prescribed fee,...

(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 appropriate. (2) Where it appears to the Authority that there are reasonable grounds for the revocation of a...

(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 up or is otherwise dissolved or deregistered under the Co-operative Societies Act (Cap. 490); (b)...

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 average monthly balance of its deposits and borrowings at the close of business on such day as may be...