Understanding SASRA: who is SASRA and what’s its role?

SASRA, the SACCO Societies Regulatory Authority, plays a pivotal role in overseeing the operations of Deposit Taking Sacco Societies (DT-SACCOs) and specified Non-Deposit Taking Saccos (NDTS) in Kenya. Let’s delve into who is SASRA, when it was established, and what its mandate entails.

Who is SASRA?

Established as a body corporate in 2010, SASRA operates under the provisions of the Sacco Societies Act. Its primary objective is to regulate and license SACCOs and cooperatives in Kenya. SASRA functions under the oversight of the Commissioner of Co-operative Development, situated within the Ministry of Agriculture, Livestock, Fisheries, and Co-operatives.

Roles of SASRA

SASRA’s mandate revolves around regulating, supervising, and licensing SACCOs and cooperatives in Kenya in accordance with the Sacco Societies Act of 2008. Its core responsibilities include:

1. Licensing: Granting licenses to Sacco Societies to engage in deposit-taking activities, such as Front Office Service Activity (FOSA).
2. Assessing Membership: Evaluating the membership base and ensuring compliance with regulatory standards.
3. Financial Monitoring: Closely monitoring the financial performance, soundness, and stability of DT-SACCOs to safeguard depositor funds.
4. Liquidity Management: Assessing and managing the liquidity levels of SACCOs to ensure they can meet their financial obligations.
5. Deposit Oversight: Overseeing the management and utilization of deposits within SACCOs to prevent misuse or misappropriation.
6. Financial Access and Inclusion: Promoting financial access and inclusion by encouraging SACCOs to reach underserved populations.
7. Policy Development: Contributing to the development of policies and regulations that govern the SACCO sector.

One prominent example of SASRA’s regulatory oversight is its authority over Mwalimu National, a prominent SACCO in Kenya. Mwalimu National, like other deposit-taking SACCOs, operates under the regulatory framework established by SASRA. This framework ensures compliance with legal and operational standards, fostering transparency, accountability, and stability within the SACCO sector.

Author: Andrew Walyaula

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