Sacco Societies Act Cap 490B in Kenya

(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 person who contravenes the provisions of this section commits an offence and shall be liable, on...

(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 evidence of his or her ability to repay the loan or credit facility. (3) Every Sacco society shall...

(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 prescribe. (2) No Sacco society shall grant a loan or credit facility against the security of the core...

(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 with all requirements under this Act with respect to loans to other members and shall not be made on...

(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 guarantor or endorser of a loan or credit facility or for any other obligation. (2) A Sacco society may...

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, obligations or other accounts of deposit-taking institutions under the Banking Act (Cap. 488); (c)...

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 transactions and financial position to enable the Authority determine whether the Sacco society has complied...

(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 liabilities; (b) an audited profit and loss account; and (c) a copy of the auditor's report; (2) A...

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 society; (b) any advances or credit facilities exceeding such limits of its core capital as may be...

(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 appointed as an internal auditor under this section unless the person holds such professional...

(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; and (c) appointed as such by the Authority. (2) A Sacco society shall not remove or change its...

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 auditors approved and duly registered by the Authority; and (c) is not — (i) an officer of a Sacco...

(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 society which does not comply with the provisions of this section shall be liable to pay to the...

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 shall— (a) prescribe prudential standards to be adhered to by Sacco societies; (b) undertake inspections...

(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 Sacco society and of its books, accounts and records. (2) The Authority shall assist 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 of any regulations made thereunder or in any manner detrimental to or not in the best interest of...

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 detrimental to or not in the best interests of its members or members of the public, or a Sacco society...

(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 exclusion of the board of directors, including the use of the corporate seal of the society; (b) appoint...

(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 period as is specified in the notice, all such returns or information as specified in such...

(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 the Authority under the Act or any other written law. (2) The Authority shall, in establishing an...

(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 this Act. (2) The information furnished under this subsection shall not be published if it would...

(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 constituting the Deposit Guarantee Fund shall be invested by the Board of Trustees in government securities...

(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 Authority; (c) the Principal Secretary to the National Treasury or his representative; (d) the Governor...

(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) The Board of Trustees shall regulate the conduct of its affairs.

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 Deposit Guarantee Fund; (c) moneys borrowed for the purposes of the Deposit Guarantee Fund; and (d)...

(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 aggregate credit balance of any accounts maintained by the member to a Sacco society, less any...

(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 in consultation with the Cabinet Secretary from time to time by order published in the...