What is FOSA (Front Office Service Activity)?
FOSA, or Front Office Service Activity, is the quasi-banking service some Kenyan SACCOs run alongside their core co-operative function: withdrawable savings accounts, salary processing, ATM or mobile access and short-term advances. Operating a FOSA means taking withdrawable deposits from members, which is a regulated activity requiring a licence from SASRA.
A real Kenyan example
A member whose SACCO runs a FOSA can have salary paid in, withdraw from it during the month, and separately maintain BOSA deposits that build borrowing capacity.
Why it matters
FOSA is the difference between a SACCO that can be your day-to-day account and one that cannot, however good its loan terms. It is also the reason to care about a SACCO's regulatory standing, because a FOSA holds money you expect to be able to access.