Savings and credit regulatory body signs MoU with Strathmore University

By Today Financial News

The Sacco Societies Regulatory Authority (SASRA) and Strathmore University have signed a Memorandum of Understanding to enhance research in the cooperative movement.Sasra Chief Carlius Ademba says regulated sector boosts investor confidence

According to Sasra Chief Executive Officer Carilus Ademba the MOU will enable the two bodies to collaborate and develop information and relevant data on the multi-billion shilling sector.

Mr Ademba is also calling for more stringent regulation of Saccos to enable them to upscale their operations to the same level as corporate financial institutions including commercial banks.

SASRA already deals with 215 deposit taking Sacco’s and with better regulations, more people will develop more confidence in the sector and increase investment. Some saccos like Mwalimu Sacco are bigger than some local commercial banks.

“We want to be at a level where you can be served by a bank or a Sacco and you are assured that your investments are safe,” says Ademba.

“With the economic development the country is going through, we feel that the Saccos should be up scaled to a higher level and this can only be done through regulation. It will be easier to deal and do business in the Sacco sector. The government can even channel their funds through the Sacco sector if executed well.

There are over 3,500 active Saccos in Kenya. The deposit taking Saccos, which are regulated by SASRA offer varied activities including deposit mobilization through the Front Office Services Activities (FOSA).

The key mandate of SASRA is to regulate the 215 institutions which control over 81 per cent of the sector portfolio which stand at Sh202 billion.

Ademba said the basic objective of the MoU is to allow various collaborative research activities for the mutual benefit of the two institutions for furtherance of their businesses.

Some of the areas that will also be covered in the agreement are challenges facing the co-operative and the Saccos sub-sector as well as improved governance.