5 saccos societies that conduct deposit taking services illegally

Kenyans have been warned against depositing their money with unlicensed Savings and Credit Co-operative (Sacco) societies.
The Sacco Societies Regulatory Authority (SASRA), on Thursday, September 11, 2015, listed five SACCO it says are illegally collecting funds from the public with false promises of favourable returns.

“Sacco Societies which are registered under the Cooperative Societies Act (Cap 490), to do non-deposit-taking business are legally restricted and limited to only undertaking non-withdrawable deposits for purposes of extending credit on the collateral of such non-withdrawable deposits,” reads a notice signed by John Mwaka, the acting chief executive officer.

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The five institutions are:
1. Good Life Sacco Society Ltd/Fedha Micro-Finance Investment Ltd operating in Nairobi, Thika, Eldoret, Kericho.
2. Prevailing Sacco Society Ltd in Nakuru and Kericho.
3. New Milimani Sacco Society Ltd in Nairobi.
4. Millionaire Sacco Kenya which is operated virtually on-line.
5. Urithi Premier Sacco/Urithi Housing Cooperative Society Ltd in Thika.
The Sacco societies are not allowed to provide Front Office Services Activities (FOSA) like savings and deposit accounts of any description, ATM services and mobile money business.

“Members of the public are therefore requested and advised to desist from undertaking or transacting deposit-taking Sacco business (FOSA) with any person, institution or entity unless the person, institution or entity is licensed by the Authority as a deposit-taking Sacco Society,” Mwaka said.

Those who continue to transact deposit-taking business with the unlicensed institutions would be doing so at their own risk and peril.
Urithi Housing chairman Samuel Maina told a local paper that had not started offering Fosa services as they are yet to get the licence.
Good Life Sacco founder Obadiah Maina also said they had applied to upgrade and offer Fosa services but are yet to start.


SOURCE: Tuko.co.ke