Over the past few years, the number of Saccos in the country has experienced exponential growth, with notable examples including Kenya Police Sacco, Stima Sacco, and Mwalimu Cooperative.
This trend is also being driven by large corporate entities in both the private and public sectors, which are increasingly recognizing the attractiveness of Saccos.
For individuals, Saccos offer an effective means of saving and a quick and affordable way to raise capital. Additionally, Saccos as entities benefit from the power that comes with having a membership base and a regular income stream from contributions.
According to a report by the Sacco Societies Regulatory Authority (SASRA), there were 175 registered and regulated Saccos with a combined asset value of Ksh 393 billion as of 2016. These figures underscore the growing interest in this thriving field.
To register a Sacco, the following steps must be taken:
Step 1: Registration
A proposed Sacco name must be submitted to the Cooperative Society Department in Sheria House for approval, subject to availability. Once the name is approved, a Sacco registration form must be completed with details of all board members and members, including proof of identity documents and physical addresses. It is highly recommended that applicants visit the Cooperative Society Department to obtain comprehensive information on fees, application timelines, and required resources.
Step 2: Operational Requirements
If a Sacco intends to accept deposits from its members or customers, it must obtain a license from SASRA. SASRA is mandated by section 24 of the Saccos Societies Act 2008 to license and regulate the operation of Deposit Taking Saccos. The approval process for a license to operate can take four months or longer.
Non-deposit taking Saccos are exempt from this requirement, although they must still meet other operational requirements depending on their intended area of operation.
The minimum number of members required for registration varies by sector:
* 50 members for agricultural societies
* 20 members for Savings and Credit Cooperative Societies
* 10 members for other types of Cooperatives
Members must be at least 15 years old, while board members must be at least 18 years old.
Step 3: Becoming Operational
Upon completion of the above steps, a Certificate of Registration will be issued by the Registrar, enabling the Sacco to open a bank account, obtain other business permits, and make arrangements for NHIF and NSSF, as well as tax obligations.
We wish you success in your endeavors to register your Sacco.
