NAIROBI, Kenya, May 9 – The Sacco Societies Regulatory Authority (SASRA) held a meeting Wednesday with stake holders to discuss a raft of regulations to strengthen the non-deposit taking Sacco business in Kenya.
Cabinet secretary, Trade and industrialization Peter Munya said the aim of SASRA is to help the sector to comply with certain basic requirements for good business.
He said heads of Savings Credit Co-operative Societies (SACCOs) will undergo vetting to remove any ‘scamsters’ who could conned the public.
CS Munya noted that pyramid scheme founders had invaded the SACCO sector, putting the savings and investments of millions members at risk.
“These fraudsters are everywhere in financial institutions and even in the SACCO sector … we want to form regulations that will deal with them,” he warned, adding that many Kenyans are still wounded from being swindled of their money by ‘ponzi-style’ fraudsters where they were promised returns.
“We want to help ordinary citizens who are investing and want to grow. Investors require regulations that will assure them of the safety of their investments and savings,” he assured.
CS Munya stated that the regulations made will help to re-build confidence in the SACCO financial sub-sector.
“The law and policy that has been there is inadequate to respond to challenges this is why we appointed this task force that has been looking into the sector and consulting with the members of the public to arrive at a frame work that will help the regulatory authority manage the challenges that may arise,” he stated.
Munya suggested creation of a digital platform that would manage SACCO funds and help detect regulation issues.
“Technology is a major driver and enabler of good governance and coupled with the right systems it will provide solutions for the challenges and problems as the emerge,” Munya said.
He concluded that funding for that kind of platform would be required and the government would look into the matter.