A SACCO is a Savings and Credit Cooperative Organization that is owned, managed and run by its members who have a common interest and goal. As of 2018, there are 162 SACCOS in Kenya licensed and gazetted by the government to undertake deposit taking. On this article, we are going to look at the registration requirements for those intending to start a deposit-taking SACCO in Kenya.
Before you do anything, make sure your SACCO is able to provide a minimum core capital of Kshs 10 million as shown in your financial or through submission of bank statements. You will also be asked to provide a detailed four-year business plan and feasibility study including projected financial statements. After providing all these, your SACCO directors and senior management will be subjected to a fit and proper test in order to vet their moral and professional suitability to be on the board and to manage the SACCO society.
Sacco Registration Process
1. Choose and submit the Sacco name to the Cooperative Society Department in Sheria House, Nairobi. They will review the name and upon approval, the board members and members will have to fill the registration application forms. Download the registration form (Form A) here.
- A member must be at least fifteen (15) years of age
- Board members should be eighteen (18) years of age
- Every member must have a common need with other members of the society
- A member must be in an occupation relevant to the primary society
- A member must be capable of paying fees and buying shares
A Savings and Credit Cooperative Society ( SACCO) have at least twenty (20) members requirement. You will pay a registration fee of Ksh.500 to register your SACCO.
2. Once the registration is complete, you will submit a license application form to SASRA ( Sacco Societies Regulatory Authority ) alongside your SACCO registration documents for review. Below is a summary of the documents you must submit ;
- Completed application for a license
- A certified copy of the Sacco Society’s registration certificate
- A verified official notification of the Sacco Society‘s registered head office
- A certified copy of the Sacco Society‘s bylaws
- A three-year business plan and feasibility study of the Sacco Society to be licensed detailing the vision and mission, scope and nature of business operations, projected profitability to achieve the minimum prudential standards, control measures and monitoring procedures
- A certified extract of minutes of the general meeting resolution authorizing the application for the deposit-taking license.
- The name of the proposed chief executive officer
- Certified copies of financial statements for the preceding three years, where applicable.
- Evidence that the Sacco Society has adequate capital
- An application fee of three thousand
3. If satisfied, SASRA will issue a Letter of Intent, upon which the SACCO will be required to set up its business premises, put in place a management information system (MIS), and develop a comprehensive risk management framework.
4. Once all the above have been completed, SASRA will then conduct an on-site inspection within 30 days.
5. If satisfied, SASRA will issue a Letter of Compliance to the SACCO within another 30 days.
6. SASRA will then issue a license upon payment of the SACCO licensing fee of KShs 50,000 for a head office and KShs 20,000 for every branch held.
It takes an average of 4 months for SASRA to issue a license. The license to conduct deposit-taking business will be renewed after every one year ( valid up to the 3 1st December, of the year in which it is issued )
The SACCO shall at all times maintain :
- core capital of not less than ten million shillings;
- core capital of not less than ten percent of total assets;
- The institutional capital of not less than eight percent of total assets; and
- core capital of not less than eight percent of total