Kenyan regulator cuts levy for new Saccos
NAIROBI– Kenyan Sacco Societies Regulatory Authority [ Sasra ], has cut the proposed annual fees for SACCOs with non-withdrawable deposits to 0.15 percent from 0.165 percent as earlier proposed.
The reduction follows the opposition to the proposed levy from industry players reducing the projected revenue by at least Ksh 55 million in the first year.
The enforcement of the new proposed levy will spread over four years from 0.1 percent of 2023 deposits. “This means that the 185 non-withdrawable deposit-taking Saccos will pay at least Ksh 85.22mln in 2023 fees on the more than Ksh 85.22bln deposits they control,” Sasra Chief Executive Officer Peter Njuguna, adding, “This is a drop of Ksh 55.40mln from Ksh 140.62mln under the previous rate.”
The 2022 reviewed rates will rise to 0.13 percent in 2024, 0.14 percent in 2025, and 0.15 percent in 2026.
Meanwhile, Kenyan co-operative Societies will participate in social welfare activities in line with this year’s International Co-operative Day [ICA] scheduled on June 2, 2022.
Locally known as Ushirika Day, the important event will be celebrated under the theme Cooperatives Build a Better World.
Speaking recently Principal Secretary in the State Department of Co-operative Development Ismail Noor said the movement plays a significant role in the growth of the economy and uplifting the social status of Kenyans.
“Cooperatives have remained resilient despite the Covid-19 pandemic effects,” he said.
The official highlighted some of the sector’s achievements, such as the review of the National Cooperative Policy, which resulted in a 2020 sessional document.
He stated that they had made conscious steps to address non-remittance to co-operatives and that the outstanding sums owed will be gradually reduced.
On the other hand, total net assets for banks in Kenya grew by 11.4 percent from Ksh.5.4trn in December 2020 to Ksh.6.0trn in December 2021, the growth being supported by the increase in loans and advances.
Customer deposits increased by 7.1 percent from Ksh.127.2bln in 2020, to Ksh.136.3bln in 2021.
The growth in deposits was due to deposit mobilization through agency banking and Kenyan mobile phone platforms.
The pre-tax profit for the sector increased by 75.8 percent from Ksh.112.1bln in December 2020, to Ksh.197.0bln in December 2021. The growth was largely supported by the growth in the credit portfolio, investment in the Kenyan government securities, commissions, and earnings from foreign exchange trading.
Gross loans increased by 8.3 percent from Ksh.3,006.1trn in December 2020, to Ksh.3,255.4trn in December 2021. The growth in loans is attributed to increased demand for credit by the various economic sectors.
https://thecooperator.news/new-rules-to-protect-kenyan-sacco-members/
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