About the Bill
The Sacco Societies (Amendment) Bill, 2021 (National Assembly Bills No. 55 of 2021) is a Bill sponsored by the Leader of Majority Party. The Bill seeks to amend the Sacco Societies Act (No. 14 of 2008) by providing for the usage of ICT in collecting and receiving statutory reports. It provides in clause 9 that the Authority may establish and operate an electronic filing system for the purposes of electronic filing of the statutory returns and documents or other information required to be furnished to the Authority under the Act or any other written law. There are other amendments which are intended to clean up the Act, for example replacement of words like “Minister” with “Cabinet Secretary”.
This is one of the Acts of Parliament that was nullified by the Court of Appeal in Civil Appeal No. E084 of 2021 for want of participation by the Senate. The National Assembly has therefore republished it. Read more on the court case here.
Provisions of the Bill
Clause 2 of the Bill amends the Act to align the definition of the term Minister with the Constitution.
Clause 3 of the Bill amends section 4 of the Act to provide that a person shall not be qualified for appointment as a member of the Board of the Sacco Societies Regulatory Authority if the person is a Member of Parliament or a County Assembly or is one who does not meet the requirements of Chapter Six of the Constitution.
Clause 4 of the Bill amends section 20 of the Act to provide that the Sacco Societies Regulatory Authority shall submit its statement of income, expenditure, assets and liabilities to the Auditor-General and not the Controller of Budget in line with the Constitution. The amendment also seeks to make reference to the correct citation of the Public Audit Act.
Clause 5 of the Bill amends section 24 of the Act to require an application made by a Sacco Society intending to transact the deposit-taking business to be accompanied by evidence that the Sacco Society meets the minimum capital requirements prescribed in regulations.
Clause 6 of the Bill amends section 27 of the Act to among other things provide that the registration of a Sacco Society, the license of which, is revoked under the provisions of the Act shall be cancelled in accordance with section 62 of the Co-operative Societies Act.
Clause 7 of the Bill amends section 45 of the Act to make reference to the correct citation of the Companies Act.
Clause 8 of the Bill amends section 51 of the Act to provide that where the Sacco societies Regulatory Authority determines that a Sacco Society conducts its business in a manner contrary to the provisions of the Act or of any regulations made thereunder or any other Act or in any manner detrimental to or not in the best interests of its members or members of the public, or a Sacco society is undercapitalized, the Authority shall impose financial penalties on the society or any officer, director, committee member, employee or agent of the Society in such amounts as may be prescribed through regulations.
Clause 9 of the Bill amends the Act by inserting a new section to provide that the Authority may establish and operate an electronic filing system for the purposes of electronic filing of the statutory returns and documents or other information required to be furnished to the Authority under the Act or any other written law. For the verbatim text, read below.
Since the Bill is one that concerns county governments, once the National Assembly concludes considering it, it will be transmitted to the Senate for consideration.
The Bill in a Snapshot
Bill’s Title: The Sacco Societies (Amendment) Bill, 2021 (National Assembly Bills No. 55 of 2021)
Publication Date: 26th November, 2021
Sponsoring Member: Leader of Majority Party
Departmental Committee: Trade, Industry and Cooperatives
ayes & nays