Public warned against deposits with Jacaranda and Kenya Midlands SACCOs
The public has been cautioned against making any deposit-taking transactions with Jacaranda SACCO Society Ltd and Kenya Midlands SACCO Society Ltd.
Peter Njuguna, CEO of SASRA, stated that both institutions failed to meet the minimum requirements for licensing as deposit-taking SACCOs (DT-SACCOs).
As a result of their license revocation, the number of licensed DT-SACCOs has decreased from 176 to 174. Engaging in deposit-taking activities with these SACCOs puts investors at risk of losing their money.
“At the beginning of the year, there were 176 DT-SACCOs licensed by the Authority. However, two SACCOs, Jacaranda and Kenya Midlands, did not maintain the necessary standards, leading to the loss of their licenses,” Njuguna explained.
DT-SACCOs are organizations that accept both easy-to-withdraw and non-withdrawable deposits. Non-withdrawable deposits can be used as collateral but are not refundable until membership ends. In contrast, non-deposit-taking SACCOs are licensed under the Co-operative Societies Act and cannot accept withdrawable deposits or present themselves as deposit-taking entities.
When choosing a SACCO, individuals should decide between deposit-taking and non-deposit-taking options.
While non-deposit-taking SACCOs are straightforward, it’s essential to exercise caution with deposit-taking SACCOs. Ensure that any institution you invest in is credible and licensed.
Be wary of unlicensed entities and schemes that promise quick, high returns or offer non-existent properties. These can often be Ponzi or pyramid schemes.
Despite the challenges faced by some SACCOs, the DT-SACCO sector has shown impressive growth in membership, assets, revenue, and dividends for shareholders. This growth has had a positive impact on both individual members and the national economy.
The cooperative movement in Kenya is thriving, and it’s important to nurture this progress for a bright future.
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com
