June 14, 2024
News

Diaspora Saccos at Risk with Sasra

Existing and new diaspora Saccos are at risk as they will be regulated by the Sacco Societies Regulatory Authority (SASRA). Currently Diaspora Sacco depend on the Ministry of Industrialization and Enterprise Development, but this might change if the draft Sacco Societies (Specified Non-Deposit Taking Business) (Levy) Order, 2022 currently at public participation stage is passed.

Read also: Sasra to raise ksh137m in levies from Diaspora and other Saccos

Sasra has been supervising deposit-taking Saccos alone, from which it has been collecting a levy of 0.175 per cent of total deposits, but says its resources are already stretched and to accommodante the diaspora Saccos SASRA will impose an annual levy on the total deposits held to fund the regulator’s operations.

As the leaders of some Diaspora sacco especially in Europe and North America try to organise themselves to lobby for an exception, others are ready to wind up their organisation to protect their members saving from what they are calling milking by SASRA.

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