SACCO Registration Requirements in Kenya

Savings and Credit Cooperative Organizations (SACCOs) play a crucial role in Kenya’s financial landscape, providing members with access to savings and credit facilities. If you’re considering starting a deposit-taking SACCO in Kenya, it’s important to understand the registration requirements and process. Here’s a comprehensive guide:

Understanding SACCO Registration Requirements:

1. Minimum Core Capital: Ensure your SACCO can provide a minimum core capital of Kshs 10 million, demonstrated through financial statements or bank statements.
2. Business Plan and Feasibility Study: Prepare a detailed four-year business plan and feasibility study, including projected financial statements.
3. Fit and Proper Test: SACCO directors and senior management will undergo a fit and proper test to assess their moral and professional suitability.

SACCO Registration Process:

1. Submit SACCO Name: Choose a SACCO name and submit it to the Cooperative Society Department at Sheria House, Nairobi. Upon approval, fill out the registration application forms (Form A).
   • Member Eligibility: Members must be at least 15 years old, while board members should be 18 years or older.
   • Common Need: Members must share a common need with other SACCO members.
   • Relevant Occupation: Members should be engaged in an occupation relevant to the SACCO’s primary purpose.
   • Financial Capability: Members must be capable of paying fees and buying shares.
   • Membership Requirement: SACCOs must have a minimum of 20 members.
   • Registration Fee: Pay a registration fee of Ksh. 500.
2. License Application: Submit a license application form to the Sacco Societies Regulatory Authority (SASRA) along with required documents for review.
   • Required Documents:
     • Completed license application form
     • Certified copy of SACCO’s registration certificate
     • Verified official notification of SACCO’s registered head office
     • Certified copy of SACCO’s bylaws
     • Three-year business plan and feasibility study
     • Extract of minutes of the general meeting resolution authorizing the license application
     • Proposed chief executive officer’s name
     • Certified financial statements for the preceding three years
     • Evidence of adequate capital
     • Application fee of Ksh. 3,000
3. Letter of Intent: Upon satisfaction, SASRA issues a Letter of Intent. SACCO must set up business premises, develop a management information system (MIS), and establish a risk management framework.
4. On-Site Inspection: SASRA conducts an on-site inspection within 30 days.
5. Letter of Compliance: If satisfied, SASRA issues a Letter of Compliance within another 30 days.
6. License Issuance: SASRA issues a license upon payment of SACCO licensing fees: KShs 50,000 for a head office and KShs 20,000 for each branch held.
   • Licensing Duration: The license is valid for one year and renewable annually.

Conclusion:

Starting a deposit-taking SACCO in Kenya requires meticulous planning and adherence to regulatory requirements. By understanding the registration process and meeting the necessary criteria, you can establish a SACCO that serves the financial needs of its members while contributing to economic growth and development.