Kenya Sacco Bill Sparks Withdrawal Fears Amid Clarifications

The Sacco Societies (Amendment) Bill, 2025, tabled in parliament in mid-2025, seeks to modernize regulations by easing liquidity rules for smaller Saccos, strengthening SASRA oversight, and activating a deposit protection fund with a Sh100,000 payout cap per account.

Critics misread provisions like a voluntary secondary co-operative for Saccos to pool resources, fearing it becomes a presidential-controlled entity, though its board would be elected by members and it can't lend to individuals.

Officials from SASRA and parliament label the panic 'propaganda,' noting no changes to member-elected management or withdrawal rights, as public input continues.

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