In this post, we will have a look at the functions of the Sacco Societies Regulatory Authority (SASRA). This is a state corporation that was established in 2010 to license and supervise Deposit Taking Sacco Societies in Kenya. It is under the Ministry of Industrialization and Enterprise Development.
Through its regulation, SASRA ensures that there is confidence in the public towards the Sacco sector and promoting Kenya’s economic growth through the mobilization of domestic savings. Below are the functions and roles of SASRA.
1. Licencing Sacco societies that are carrying out deposit-taking business in Kenya
This includes the issuance of licenses, revocation of licenses, and publication of licensed Sacco societies.
2. Regulating and supervising Sacco societies in Kenya.
This includes the inspection of Sacco societies and enforcement of actions.
3. Levying contributions that Saccos ought to pay.
4. Ensuring even distribution of Deposit Taking SACCOs throughout the country to spread financial inclusivity.
5. Holding, managing, and applying the General Fund of the Authority in accordance with the laws of Kenya.
The general fund constitutes all proceeds of the levy and all the money accrued from any other source provided for or donated or lent to SASRA.
6. Protection of member deposits through the Deposit Guarantee Fund. This includes up to an amount of one hundred thousand shillings in respect of each member.
7. Imposing Sanctions for non-compliance
SASRA is also mandated to impose sanctions in case a SACCO fails to meet regulations such as capital adequacy. Such sanctions include suspension of lending and investment, a prohibition from acquiring, through purchase or lease, of any additional land and buildings, and prohibition from accepting further deposits or other lines of credit.
8. Liquidity and asset-liability management
SASRA is responsible for formulating, reviewing, and adjusting the liquidity policy of the Sacco Societies on an annual basis.
9. Reviewing SACCOs Financial performance
Saccos submit to SASRA by the 15th day of each month a return of the Statement of the income and expenditure and a Statement of financial position showing results of its operations for the preceding month for reviewal.
10. Imposing Financial penalties.
SASRA is also mandated to impose financial penalties to a Sacco Society which fails to submit reports and information required by the Authority or to a Sacco Society which submits incorrect reports and information.
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