Rogue Savings and Credit Societies (Saccos) in Nakuru are now on the spot, with the Sacco Societies Regulatory Authority (SASRA) warning unlicensed Saccos of dire consequences on their latest tweet made on Friday.
This latest development comes shortly after Central Bank of Kenya (CBK) on Thursday April 7, 2016, appointed the Kenya Deposit Insurance Corporation (KDIC) as a receiver for Chase Bank Limited for a period of twelve months, following credibility concerns surrounding its financial statements.
According to the tweet, the Sacco regulator said no Sacco or individual person, institution or entity is allowed to undertake deposit-taking business unless it is licensed by the authority.
According to its website, 164 sacco societies are licensed to undertake deposit-taking Sacco business in Kenya for the financial year ending December 2016, and 12 restricted Sacco licenses for the period ending June 6, 2016 which will have their status reviewed in June.
They further warned that Saccos whose licences were revoked or failed to renew their licences in December 2015 are not authorised to transact business.
The principal mandate of the Authority is to license Sacco Societies to undertake deposit-taking Sacco business in Kenya (popularly known as Front Office Service Activity or FOSA), and to supervise and regulate Sacco Societies in Kenya.