Ruto’s government set to raid Kenyans’ savings in a new push to fund the Sacco Societies Regulatory Authority (SASRA)
President William Ruto’s administration plans to access the savings of Kenyan citizens as part of a new initiative to generate funds for the Sacco Societies Regulatory Authority (SASRA).
The regulatory focus is on non-withdrawable deposits, usually requiring account holders to keep their funds untouched for a specific duration.
Beginning January 1, 2024, all Savings and Credit Cooperative Societies (SACCOs) registered under the 2020 Sacco Societies (Non-Deposit Taking Business) Regulations will need to remit a revised annual levy until December 31, 2027.
The Annual Sacco Societies Levy is set at 0.1% of non-withdrawable deposits for the period between January 1 and December 31, 2024. Subsequently, it will undergo incremental increases to 0.13% in 2025, 0.14% in 2026, and finally, 0.15% in 2027.
“The levy paid under subparagraph (1) shall be based on the total non-withdrawable deposits held by the Sacco society as indicated by the audited financial statements of the Sacco society for the immediately preceding financial year,” SASRA chair Jack Ranguma and chief executive officer Peter Njuguna stated, as reported by Business Daily.
SASRA clarified that the levy will not surpass KSh 6 million.
What’s the value of Sacco savings?
Last year, the savings in Saccos exceeded the KSh 1 trillion milestone for the first time, a noteworthy achievement. This occurred despite economic challenges that prompted some savers to withdraw funds for their daily necessities.
“Target achieved as a result of improved member confidence and access to financial services through the adoption of digital channels by Saccos,” the Ministry of Cooperatives stated.
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Ruto’s government set to raid Kenyans’ savings in a new push to fund the Sacco Societies Regulatory Authority (SASRA)
