The SACCO Societies Regulatory Authority (SASSRA) has urged regulated SACCOs to strengthen compliance frameworks to protect members' savings and boost sector integrity. The call came during a virtual sensitization session on Anti-Money Laundering (AML) and Proliferation Financing (PF) compliance. CEO David Sandagi emphasized robust systems for legal duties and fund protection.
During the virtual sensitization session, SASSRA noted that SACCOs play a critical role in Kenya's financial ecosystem, requiring standards of transparency and accountability.
Chief Executive Officer David Sandagi stated that "robust compliance systems are essential not only for meeting legal obligations but also for protecting members' funds."
The authority issued recommendations including enhancing customer due diligence to verify members and transactions, improving suspicious transaction reporting, and empowering compliance officers through capacity building and awareness initiatives.
The push comes amid heightened concerns over financial mismanagement and fraud in some SACCOs. Parliament is advancing the Sacco Societies (Amendment) Bill, 2025, which proposes a central liquidity framework and a two-tier structure with secondary SACCOs handling wholesale operations for primaries.