Following the gazettement of The SACCO Societies (Non-deposit taking business), Regulations, 2020, to start regulation on Non-deposit taking SACCOs with an asset base above 100M, good governance practices have been re-stated, placing a heavy responsibility on elected Boards of Management.
Board Members are required to exercise prudence and diligence and shall not carry out SACCO business contrary to the law, regulations, guidelines and directives of the regulations.
The regulations give considerable guidance on members’ rights, members’ protection against discrimination of any nature, guarantees equal opportunities for all members and the responsibility of Utabibu SACCO to give full disclosure on all products available that must also be in sync with the needs of our members.
Our SACCO must develop responsive service charters and complaints handling procedures and define infrastructure for which to operationalize the same.
We are required to file periodic quarterly and annual reports to SASRA to apprise them on state of affairs of Utabibu SACCO. Such reports will be on: capital adequacies, liquidity statements, operation locations/change, credit portfolio, external borrowings, governance appointments/change, and a host of other policies that must be certified.
Our SACCO is doing well in the financial ratios, nonetheless, some areas will need to be improved, your obligations and input will be required, and we hope you will rise to the occasion when called upon.
New Requirement
Whereas, Total shareholders’ funds is required to be 8% of Total Assets ours is at 4%. Similarly, Core Capital to members’ deposits should be 5% ours is 4.6%. Reserves and share capital are what constitutes shareholders’ funds. Therefore, when the right time comes, we will make the appropriate ratio allocation to ensure our society adhere to new regulations, this will impact interest on deposits
Risk-centred management approach has also been given province in the regulations for purposes of enhancing internal controls. These includes establishing an internal audit function within our SACCO which did not exist before.
We are required to institute business contingency measures, disaster preparedness and business continuity plans. Such include having workable information preservation mechanisms to safeguard critical information. The board has also undertaken a review of all our policies, by-
To attain the intent of the reformative guidelines by SASRA, the Board of management of Utabibu SACCO has taken this earliest opportunity to sensitise members on the new regulations pursuant to SACCO Regulations, 2020, gazetted on May 5, 2020
We have committed to remain your financial friend as we keep you abreast the any new development in the Cooperative movement.
By Board of management, Utabibu SACCO – 2020/10/16
