How to pay for SACCO licence

A Savings and Credit Cooperative Society (SACCO) in Kenya must be licensed by the Sacco Societies Regulatory Authority (SASRA) before it can operate legally. This licensing process ensures that SACCOs comply with regulatory standards, protect members’ savings, and operate in a transparent and sustainable way. For both deposit-taking (DTS) and non-deposit-taking (BOSAs) SACCOs, paying for a licence is one of the final steps in the registration process.

SACCO Licensing

The Sacco Societies Act, 2008 requires all SACCOs operating in Kenya to apply for a licence annually. This licence allows a SACCO to carry out business such as receiving deposits, issuing loans, and managing members’ funds.
The licence fee varies depending on the type and size of the SACCO. Deposit-taking SACCOs usually pay a higher fee compared to non-deposit-taking SACCOs, since they handle members’ deposits.

Steps to Pay for a SACCO Licence

1. Apply for the Licence

The SACCO must submit its application for a licence to SASRA. This includes providing:

• The SACCO’s constitution or by-laws.
• Details of board members and senior management.
• Audited financial statements.
• Evidence of compliance with prudential standards.

Once the application is reviewed and approved, SASRA will issue an invoice or reference for payment of the licence fee.

2. Generate Payment Details

Payment for the SACCO licence is made through the government’s revenue collection system, usually the Kenya Revenue Authority (KRA) Paybill number or through SASRA’s designated bank accounts.
The SACCO will be issued with a Payment Reference Number (PRN) or invoice that must be used to complete the transaction.

3. Choose a Payment Method

There are three main ways to pay for the SACCO licence:

• Mobile Money (M-Pesa):
  • Go to M-Pesa menu.
  • Select Lipa na M-Pesa → Paybill.
  • Enter the KRA or SASRA Paybill number provided.
  • Input the Payment Reference Number as the account number.
  • Enter the licence fee amount.
  • Confirm and complete the transaction.
• Bank Payment:
  • Visit the designated SASRA bank account (usually in commercial banks).
  • Provide the Payment Reference Number.
  • Deposit the licence fee.
  • Obtain a stamped banking slip for records.
• Online Banking/E-Citizen:
  • Some payments are routed through the government’s eCitizen portal.
  • Log in, navigate to SASRA Services, and select Pay Licence Fee.
  • Enter your SACCO details and Payment Reference Number.
  • Complete payment using bank transfer, debit/credit card, or mobile money.

4. Keep the Payment Confirmation

After payment, the SACCO must retain the payment receipt or transaction confirmation message. This proof of payment will be submitted to SASRA alongside the licence application documents.

5. Licence Issuance

Once payment is confirmed, SASRA processes the application and issues the SACCO licence. The licence is valid for one year and must be renewed annually to remain in force.

Importance of Paying for the SACCO Licence

• Compliance: Failure to pay the licence fee means the SACCO cannot legally operate, and its leaders may face penalties.
• Member Confidence: A valid licence assures members that their funds are secure under government regulation.
• Access to Opportunities: Licensed SACCOs can partner with banks, government agencies, and development partners.