Application requirements for authorization of Non-Deposit taking SACCOs

In the landscape of financial institutions, Non-Deposit Taking SACCOs (NDT-SACCOs) occupy a unique position, mobilizing savings from their members and utilizing them strictly as collateral for credit facilities. Unlike Deposit Taking SACCOs, members of NDT-SACCOs do not hold accounts for deposit or withdrawal purposes, and their savings are not withdrawable unless the member exits the SACCO. As such, NDT-SACCOs do not offer front office services akin to traditional banks.

Deposit Taking SACCOs, on the other hand, are licensed and regulated by the Sacco Societies Regulatory Authority (SASRA). In addition to basic savings and credit products, these SACCOs provide essential banking services, including deposit-taking and payment services, and some even offer ATMs for convenience.

What does the Non- Deposit Taking SACCO need for Application of Authorization?

1. Name of the SACCO Society: A clear and distinct name identifying the SACCO society.
2. Members of the Supervisory Committee: Details of the individuals comprising the supervisory committee tasked with overseeing SACCO operations.
3. Chief Executive Officer: Information about the SACCO society’s appointed chief executive officer responsible for day-to-day management.
4. Registration Certificate: A copy of the SACCO society’s registration certificate issued by the relevant regulatory body.
5. By-Laws: A copy of the SACCO society’s by-laws outlining its governance structure and operational guidelines.
6. Business Plan and Feasibility Study: A comprehensive three-year business plan and feasibility study detailing the SACCO society’s objectives, strategies, and market analysis.
7. General Meeting Resolution: A certified extract of minutes from the general meeting resolution authorizing the SACCO society to engage in specified non-deposit taking business activities.
8. Audited Financial Statements: Certified copies of audited financial statements for the preceding three years, demonstrating the SACCO society’s financial health and stability.
9. Evidence of Adequate Capital: Documentation confirming that the SACCO has sufficient capital to support its operations and meet regulatory requirements.
10. Application Fee: Payment of a non-refundable application fee of three thousand shillings to process the authorization application.

Author: Andrew Walyaula

Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com