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What is Deposit-Taking SACCO (DT SACCO)?

A deposit-taking SACCO is one licensed by SASRA to take withdrawable deposits from its members, which in practice means it operates a front office, or FOSA. Licensing brings ongoing prudential requirements covering capital, liquidity, governance and periodic reporting, and the licensed institutions are published by the regulator.

A real Kenyan example

A member who wants a SACCO to hold money they can access during the month needs a deposit-taking SACCO, and confirms that status on the regulator's current published list.

Why it matters

This is the single most important distinction in the Kenyan SACCO sector for anyone deciding where to leave money. A SACCO can be a validly registered co-operative society and still not be licensed to hold withdrawable deposits, and the two statuses come from different processes under different law.

FAQs

How do I know if a SACCO is deposit-taking?
Check SASRA's current published list of licensed deposit-taking SACCOs and note its date. A SACCO describing itself as licensed is not the same as appearing on the regulator's list.
Is a deposit-taking SACCO safer?
It is subject to prudential standards and supervision that a non-licensed society is not, which is meaningful. It is not a guarantee of performance, and members remain owners with exposure to the institution rather than protected customers of a separate shareholder.
What extra obligations does a DT SACCO carry?
Licensing brings prudential requirements covering areas such as capital adequacy, liquidity, governance, risk management and periodic returns to the regulator. The specific standards are set in the regulations and revised, so confirm the current position with SASRA.
Can a SACCO lose its licence?
A regulator that licenses can also take supervisory action, up to and including revoking a licence. This is one reason to check the current list rather than one you saw previously.

Related terms

Non-Withdrawable Deposit Taking SACCO (NWDT SACCO)FOSA (Front Office Service Activity)SASRA (Sacco Societies Regulatory Authority)Co-operative Society

See all 72 terms