The Effect Of Regulation By Sasra On Performance Of Small Saccos In Kenya

A Sacco society is defined as a user-owed, user-controlled business that distributes benefits based on patronage. Direct government regulation of Saccos came about through legislation enacted by the Kenyan parliament, the Sacco Act of 2008. The regulations were necessitated by the need to give proper structures and prudential standards to Saccos especially those involved in deposit taking activities referred to as FOSAs and after the pyramid scheme saga. The FOSAs carry out banking business with members of the public most of whom are not their members. Since the Saccos were not regulated by ce…