The regulator said there are only 164 licensed saccos with 2016 annual licences while another 12 restricted saccos will have their status reviewed in June.
FRIDAY, APRIL 8, 2016
Chase Bank clients storm Kisumu Branch offices on April 7, 2016. The Sacco Societies Regulatory Authority (Sasra) said no sacco or individual person, institution or entity is allowed to undertake deposit-taking business unless it is licensed by the authority. This comes shortly after Chase Bank was put under receivership. PHOTO | TONNY OMONDI | NATION MEDIA GROUP
The regulator on Friday warned those running unlicensed saccos of dire consequences.
The Sacco Societies Regulatory Authority (Sasra) said no sacco or individual person, institution or entity is allowed to undertake deposit-taking business unless it is licensed by the authority. Sasra urged Kenyans to contact them to establish the authenticity of any sacco.
The regulator said there are only 164 licensed saccos with 2016 annual licences while another 12 restricted saccos will have their status reviewed in June.
Sasra warned that saccos whose licences were revoked or failed to renew their licences in December 2015 are not authorised to transact business.
Several entities purporting to be saccos are offering customers loans to buy land and motor vehicles.
The entities however withhold the ownership documents of the property bought using the loans until all money has been repaid.
The stern warning by the government comes amid a public outcry over the closure of Chase Bank after its directors reportedly lent themselves billions of shillings deposited by customers in its various branches countrywide.
Sasra said it will act on any complaints received from the public over savings held in illegal entities.
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