The Sacco Societies Regulatory Authority (SASRA) has shut down two SACCOs in Nairobi for failing to renew their authorization certificates by the December 2024 deadline.
In a notice issued on Tuesday, January 28, 2025, SASRA CEO Peter Njuguna announced that B-SMART Sacco Society Ltd, located at RNG Plaza in Nairobi, and MULTIPLE Sacco Society Ltd, based in the Multiple Hauliers Building on Airport South Road, have been prohibited from operating.
The shutdown was attributed to their failure to apply for the renewal of their authorization certificates and their inability to meet member and compliance obligations.
This action was taken in accordance with Regulation 10(5) of the Sacco Societies (Non-Deposit-Taking Business) Regulations, 2020.
“in accordance with regulation 10(5) of the Sacco Societies (Non-Deposit-Taking Business) Regulations, 2020, the two (2) Sacco Societies listed in SCHEDULE III herein, did not apply for the renewal their authorizations certificates upon expiry on 31st December 2024, and consequently – their authorization expired and is therefore automatically revoked pursuant to regulation 10 of the Sacco Societies (Non-Deposit-Taking Business) Regulations, 2020; and they are therefore prohibited from undertaking any form of regulated Sacco business in Kenya with effect from 1st January 2025,” Njuguna stated.
Additionally, SASRA has warned regulated SACCOs against placing or investing members’ funds in unregulated entities. Any existing placements or investments in such entities must be recalled immediately.
Currently there 178 Deposit-Taking Sacco Business and 177 Non-Deposit-Taking Business.
This comes at a time when many SACCOs are disbursing dividends to their members, a crucial period for the sector.
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