SACCOs want dissolution of regulator shelved to protect depositors
Some 200 savings and credit co-operative societies (SACCOs) want the planned dissolution of industry oversight agency deferred to enhance its ability to safeguard the Sh1.5 trillion held in member deposits and assets.
In a memorandum sent to Industrialisation Cabinet Secretary Adan Mohamed, the societies said dissolution of SACCO Societies Regulatory Authority (SASRA) risked exposing member assets valued at Sh870 billion and the Sh600 billion held in deposits to theft.
Mr Mohamed said the request to retain SASRA’s autonomy on formation of the Financial Services Authorities (FSA) was under consideration as the co-operative sector had helped improve lives via pooling of resources.
“The co-operative business model is a suitable vehicle for social-economic development and we are following up on the request as SASRA’s role as a regulator for the 200 deposit taking savings and credit societies that also run Front Office Savings activities is crucial in preserving member funds,” he said.
The CS spoke when he opened this year’s three-day convention attended by co-operative society representatives from the 47 counties convened by the Kenya Union of Savings and Credit Co-operatives Ltd (KUSCCO).
KUSCCO chairman George Magutu urged the government to fulfil its promise made last year to amend the Income Tax law that will see SACCOs enjoy tax relief for their mortgage products.
Source: http://www.businessdailyafrica.com