How to register a Sacco in Kenya

The proliferation of Savings and Credit Cooperative Societies (Saccos) in Kenya has been remarkable in recent years. With numerous benefits in terms of regulations and financial advantages, both large corporations and individuals are increasingly investing in Sacco registration. This avenue provides an effective means of saving, offering access to quick and cost-effective capital, all while empowering the Sacco entity through its membership and regular income streams from contributions.
How Much Does it Cost to Register a Sacco in Kenya?
For those considering Sacco registration in Kenya, the initial step involves paying an application fee of Sh3000.
Registration Requirements for a Non-Deposit-Taking Sacco
- A formal written request indicating the intent for the formation of the Sacco.
- Proposed names for search and approval.
- Clear definition of the objects of the society.
- Minimum of 10 members with their names, occupations, and postal addresses.
- Identification of the Chairman, Treasurer, and Secretary with their respective details.
- Proposed physical address of the society, specifying road, plot number, town, and county.
- Constitution for the society.
- Completed Form A (application for registration of a society).
- Submission of Form B (notification of registered office and address of a society).
- Filled Sacco registration form.
Upon submission, a meeting is convened with the proposed members to discuss pre-cooperative education, appoint interim officials for registration oversight, and approve the name. Additional requirements include the proposed by-laws, filled application forms, supplementary information forms, and an economic appraisal.
Sacco Registration Process
The registration process typically takes around two months. Upon name approval, a Sacco registration form is completed, providing details of all board members and members, along with proof of identity documents. The Sacco Society must then convene the first general meeting within a month after receiving the registration certificate.
Deposit Taking Sacco Registration
For those intending to take deposits, a license from SASRA is required. Further requirements include:
- For formally employed persons: A letter of confirmation from the employer.
- For religious-based common bonds: Copy of certificate of incorporation and a letter of approval from the presiding clergy.
- For Matatu/Transport Societies Sacco: Copies of at least ten log books of proposed members’ vehicles.
- For business people: Copies of certificate of incorporation/business licenses from at least ten proposed members.
- For marketing societies: Introductory letter from the area chief confirming the common bond and expected production.
- For welfare and self-help groups converting to cooperatives: A copy of the certificate of registration from the relevant ministry.
- For other informal organizations: A letter of introduction from the area Chief.
Sacco Rules and Regulations
Following the completion of the registration process, a Certificate of Registration is issued by the Registrar. This certificate enables Sacco to acquire a bank account, other business permits, NHIF, and NSSF arrangements and facilitates tax arrangements.
First General Meeting
After receiving the certificate, the newly registered Sacco Society is required to convene the first general meeting within a month. Failure to do so may lead to the recommendation of immediately canceling the certificate of registration by the cooperative officer to the Commissioner for Cooperative Development.