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{
    "id": 850164,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/850164/?format=api",
    "text_counter": 469,
    "type": "speech",
    "speaker_name": "Garissa Township, JP",
    "speaker_title": "Hon. Aden Duale",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "Although the SACCO Societies Act of 2008 provided for regulation of SACCOs, their licensing, their operations and how to protect members’ resources, it lacked certain provisions in order to address the ability of the people managing SACCOs and the mechanism of registering SACCOs to undertake deposit line of business. The proposed amendments in this Bill seek to address particular issues. The National Treasury looked at the SACCO Societies Act of 2008 and found there were regulatory and legislative gaps. So the amendments address the determination of the suitability of persons to serve as directors and officers of SACCO Societies. Who is to be a director and who is to be in management is well established in this proposed legislation. There is the establishment of a credit information sharing mechanism to include exchange of information by SACCO Societies and other licensed financial institutions. SACCOs as deposit-taking businesses must be connected to other financial institutions because they cannot live in isolation. Finally, the amendments deal with registration and licensing of SACCO Societies who will be taking function of deposit-taking as a business. These are the highlights of the proposed amendments as contained in the Bill. The amendment contained in Clause 2 seeks to insert New Sections 27A and 27B. The new proposed Clause 27A prescribes words that shall be used as part of the business name of a SACCO like the deposit-taking SACCO. It further provides that a person shall not use the words “deposit-taking SACCO” or any of its derivatives unless the person is licensed under this Act. Clause 2 proposes that all cooperative societies registered or incorporated as deposit- taking or as credit cooperative societies will within one year of registration obtain a license from the SACCO Societies. Clause 3 proposes insertion of New Section 48A that gives SACCO Societies Regulatory Authority powers to make a determination on the suitability of every person proposed to act as a director. So, that section will look at and vet the person who will be a director in any SACCO. Clause 4 proposes an amendment in Section 50 go give the Authority the power to prescribe the minimum standards on significant members of a SACCO society. They must have a continuous professional development, training and certification necessary for one to serve as a director of a SACCO. Even the qualifications are set out in Clause 4 which amends Section 50 of the parent Act. The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}