Non-deposit taking Saccos have until June to start remitting new levy to the SACCO Societies Regulatory Authority (SASRA)
The levy to be charged at a rate of 0.165 pc or Ksh8 million for Saccos has faced major opposition from players.
SASRA says it targets to collect Ksh138 million from the non-depositing SACCOs in the next financial year once the Levy order is operationalized.
The new levy which is at the public participation stage is expected to be gazetted later this year. The Authority Tuesday commenced stakeholders’ consultations on the proposed
Sasra says it runs an annual operational deficit of Ksh16 million that has negatively affected its oversight operations jeopardizing members savings.
SASRA boss David Bonyo says they will use the consultations, which end on February 25 and are a legal requirement before such policy changes, to collect feedback on the levy order from SACCOs, particularly those undertaking specified non-deposit-taking businesses, other stakeholders within the cooperative sector and the general public.
‘The rollout of the levy will see SASRA net at least Sh137.98 million from 169 non-withdrawable deposit-taking SACCOs that recently came under the authority’s regulations with deposits of Sh83.62 billion.SASRA has, however, restricted the levy at a maximum of Sh8 million, meaning that such SACCOs holding more than Sh4.84 billion will be spared the expense,’’ added Mr Obonyo.
Speaking at the same forum, SASRA CEO Mr Peter Njuguna said: “We have done a detailed appraisal of the potential impact of the proposed levy order on the SACCOs and their members and a cost-benefit analysis.
The Levy Order has been prepared based on existing government guidelines and regulations on the funding of regulatory state agencies, considering the legal underpinnings prescribed in Section 15 of the SACCO Societies Act as well as the provisions of the Interpretation and General Provisions Act. We encourage all the key stakeholders to share their feedback and opinions on the proposed Levy Order to enable us to move to the next step.”
By Fred Azelwa.