In case you are thinking of the risks involved in joining a Sacco, well SARSA, the regulator has made it simpler to weight your options especially with the question of the collapse of a Sacco. What would happen in this case?
Sacco’s recently agreed to the deposit guarantee to be bumped up to 1million Kenya shillings instead of 100,000 Kenya shillings.
Should a Sacco come under distress one can be able to now recoup from a portion of their deposits. They also voiced their support for market regulator SASRA proposal to introduce 0.156% levy on non-withdraw-able deposit taking Sacco’s.
“Deposit guarantee is going to assist the cooperation in case of any event of collapse of a Sacco at least members are to get back some portion of their deposit, like an insurance to the members deposit… it is like an insurance to the members deposit.” Says Dr. David Obonyo, Commissioner – Cooperatives Development
Philip Cherono, Chairman – UKULIMA Sacco said “This is a good thing what the government has done is something good because without regulation this sector is not going to operate well, even us… those who are registered currently when brought into regulation system, attempt to refuse by some Sacco’s but the thing is if you leave this sector unregulated then it is not going to work.”
Members can now save, borrow and transact without fear of distressed or collapse scenarios in their Sacco’s.