The Co-operative, Small, and Medium Enterprises Development Cabinet Secretary (CS) Simon Chelugui has ordered the Sacco Societies Regulatory Authority (SASRA) to investigate violations of Sacco's regulations by the Kenya Union of Savings and Credit Cooperative Society Ltd (KUSCCO).
“I note with concern that from available information and from your extensive correspondence with its Management, the Kenya Union of Savings and Credit Cooperatives Society Ltd (KUSCCO Ltd) appears to be carrying out and/or undertaking regulated SACCO businesses without being licensed and/or authorized to do so as required by the provisions of the SACCO Societies Act No. 14 of 2008 and the Regulations made thereunder,” CS Chelugui wrote in a letter to SASRA CEO Peter Njuguna.
“Regulated SACCO business as prescribed by law entails either deposit-taking SACCO business which must be licensed or specified non-deposit taking business which must be authorized,” he said.
Further, Chelugui stated that Section 49 of the Sacco Societies Act No. 14 of 2008 empowers the CS to direct the Authority to conduct inspections of any SACCO society and its books, accounts, and records.
“Consequently, I hereby direct the Authority to conduct an inspection of the said KUSCCO Ltd and of its books, accounts, and records in accordance with the requirements of the provisions of the SACCO Societies Act No. 14 of 2008, as read together with the provisions of the Cooperatives Societies Act as applied thereto by dint of Section 67 of the SACCO Societies Act No. 14 of 2008,” he said.
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“If so, determine the extent of the violation and recommend appropriate actions that may include sanctions on KUSCCO Ltd and its Directors and steps to bring it under regulation of the SACCO Societies Act No. 14 of 2008 for purposes of compliance as well as for protection of the public interest.”
