Browse an Act, find a provision and read each section in context.
Browse Acts ↓(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 officers…
(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 d…
(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 sectio…
(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 registrat…
(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 lic…
(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) fail…
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 pr…
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 person who contravenes the provisions of this section commits an offence and shall be liable, on convi…
(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 pres…
(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 cap…
(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 te…
(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) shares,…
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 with…
(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 pers…
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 prescr…
(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 qualificatio…
(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 external a…
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 society…
(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 Authorit…
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 or…