Kenya - Savings and Credit Cooperative (SACCO) License for Deposit taking Sacco

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Procedure

Apply In Person

1. To apply for a Savings and Credit Cooperative (SACCO) License for deposit-taking Sacco, the applicant should make the application to the SACCO SOCIETIES REGULATORY AUTHORITY (SASRA). Please view the SASRA contact details through this SASRA Contact Details.
2. The applicant should obtain the license application form at the reception of the SASRA office or download the form directly through this Application Form For A Licence.
3. The applicant should also obtain the Fit and Proper Test Form and the License Application Checklist.
4. Then the applicant should complete the application form correctly and the Fit and Proper Test Form which should be completed by the proposed directors and senior management of the SACCO.
5. Then the applicant should obtain all the required supporting documents as mentioned in the “Required Documents” section below and attach the document to the completed license application form and the Fit and Proper Test Form in a single file.
6. Then the applicant should pay the application fees of Ksh. 3000 by drawing a bankers’ cheque in favor of SASRA or depositing the fee directly to SASRA A/C 01120161308700 and obtaining the payment receipt.
7. Upon making the payment, the applicant should submit the application dossier to the registrar's office.
8. Then SASRA will evaluate the application and if the application meets the required standards, SASRA will issue a Letter of Intent to the applicant and 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.
9. Once the SACCO has implemented all the SASRA requirements, SASRA will conduct an onsite inspection on the SACCO’s premises within 30 days and if satisfied that the SACCO has implemented all the required conditions, SASRA will issue a Letter of Compliance to the Sacco within another 30 days and require the applicant to pay the license fee.
10. Once the applicant pays the required license fee, SASRA will process and issue the License to the applicant.

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Required Documents

• Completed license application form.
• Completed Fit and Proper Test Form.
• Certified copy of the Society’s Registration certificate.
• Verified official notification of the Society's registered head office.
• Certified copy of the Society's Bylaws.
• Business Plan and/or Feasibility Study.
• Approved ADM/AGM minutes approving the application for the deposit-taking license.
• Proposed name of the CEO.
• Preceding three years of audited accounts.
• Proof of adequate capital.

Office Locations & Contacts

Sacco Societies Regulatory Authority (SASRA) - Head Office
Physical Address: Upper Hill Road, UAP Old Mutual Tower, 19th Floor.
NAIROBI, KENYA.
P.O. Box 25089-00100, Nairobi,
Kenya
Tel: +254 (20) 2935101
E-mail: [email protected]
Website: SASRA Link

Eligibility

• A Sacco society intending to transact the deposit-taking business in Kenya

Fees

• The application fee is Ksh. 3000.

Validity

• The license is valid for one year and is eligible for annual renewals.

Documents to Use

• Application Form For A Licence.
• The Fit and Proper Test Form

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• The allocation is processed within 40 to 60 days.

Related Videos

Videos explaining the procedure or to fill the applications.
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Instructions

Specific Licensing Requirements for Saccos
The Act (Section 24) and Regulations (Section 4) detail the information required for licensing. The following is a non-exhaustive list of the major requirements:

• Capital: SACCOs have to provide a minimum core capital of KShs 10 million as shown in their financial or through submission of bank statements. All SACCOs have to comply with three capital adequacy ratios as stipulated in the Regulations.
• Fit and proper test: Both directors and senior management (or departmental heads) will be subject to a fit and proper test, vetting their moral and professional suitability to be on the board and to manage the SACCO society, respectively.
• Business plan: A detailed four-year business plan and feasibility study including projected financial statements is required.

All these requirements only apply to SACCOs conducting deposit-taking business or intending to start a FOSA.

Required Information

• Name of Sacco Society
• C.S. No.
• Date of Registration
• Location of Registered Office
• Physical Address of Head Office
• L.R. No
• Street
• Building
• Postal Address
• Postal Code
• Telephone No.
• P.I.N. No
• E-mail Address
• Names of places of business in Kenya and the number of years each has been established and has conducted or carried out business
• Former name(s), if applicable, by which the Sacco society has been known
• Details of Capital
• Particulars of Officers
• Names of Bankers and their Address
• If the Sacco society ever been put under receivership or made any compromise or arrangement with its creditors or otherwise failed to satisfy creditors in full
• If the Sacco society under investigation by an inspector or other authorized officer of any government ministry, department or agency, professional association or other regulatory body or has any investigation ever taken place in the affairs of the Sacco society
• If the Sacco society currently engaged or does it expect to be involved in any litigation which may have a material effect on the resources of the Sacco Society
• Declaration

Need for the Document

• The license proves that the SACCO is permitted to operate in Kenya as required by law.

Information which might help

• Sacco Society Regulation

Other uses of the Document/Certificate

Please explain what are other uses for obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

• SASRA

Others

More information which might help people.