Establishment of the Authority
There is established an Authority to be known as the Sacco Societies Regulatory Authority.
The Authority shall be a body corporate with perpetual succession and a common seal and shall be capable, in its corporate name, of—
(a) suing and being sued;
(b) taking, purchasing or otherwise acquiring, holding, charging, and disposing of both movable and immovable property;
(c) borrowing or lending money;
(d) entering into contracts; and
(e) doing or performing all such other things or acts necessary for the furtherance of the provisions of this Act.
Objects and functions of the Authority
The objects and functions of the Authority shall be to—
(a) license Sacco societies to carry out deposit-taking business in accordance with this Act;
(b) regulate and supervise Sacco societies;
(c) hold, manage and apply the General Fund of the Authority in accordance with the provisions of this Act;
(d) levy contributions in accordance with this Act;
(e) do all such other things as may be lawfully directed the Minister and
(f) perform such other functions as are conferred on it this Act or any other written law.
Board of the Authority
The oversight function and management of the Authority shall vest in a Board of the Authority which shall comprise—
(a) the chairman to be appointed the Minister from amongst the members appointed under paragraph (e);
(b) the Permanent Secretary to the Treasury or his representative;
(c) the Commissioner or his representative;
(d) the Governor of the Central Bank or his representative;
(e) four members, not being public officers, appointed the Minister virtue of their knowledge, and possession of a minimum of ten years experience, in co-operative practice and management, law, finance or economics; and
(f) the chief executive officer appointed under section 12.
A member of the Board appointed under subsection (1)(e) shall hold office for a term of three years and shall be eligible for re-appointment for one more term of up to three years.
The members of the Board appointed under subsection (1)(e) shall be appointed at different times so that the respective expiry dates of their terms shall fall at different times.
A person shall not be qualified for appointment as a member of the Board, if that person is—
(a) a member of the National Assembly or of a local authority;
(b) a director or employee of a Sacco society or of a co-operative society;
(c) auditor of a Sacco society or of a co-operative society; and
(d) a person who is prohibited from being a director or to take part in the management of a cooperative or financial institution the Commissioner under the Co-operative Societies Act, 1997 (No. 12 of
1997) or the Central Bank of Kenya respectively.
A member of the Board appointed under subsection (1)(e) may be removed from office the Minister, if that member—
(a) accepts any office the holding of which, if he were not a member of the Board, would make him ineligible for appointment to the office of a member of the Board;
(b) fails to discharge the functions of his office whether arising from infirmity of body or mind or any other cause;
(c) conducts himself in a manner not befitting a member of the Board; and
(d) becomes subject to any disqualification set out in subsection (4)(d).
A member of the Board appointed under subsection (1)(e) may resign office giving a fourteen days notice to the Minister.
Powers of the Board
The Board shall have all the powers necessary for the performance of its functions under this Act and, in particular, shall have the power to—
(a) supervise, control and administer the assets of the Authority in such manner and for such purposes as would best promote the objects and functions for which the Authority is established;
(b) open and operate bank accounts;
(c) determine provisions to be made for the Authority’s capital and recurrent expenditure and for the reserves of the Authority;
(d) award contracts;
(e) enter into association with other bodies or organizations within or outside Kenya as the Board may consider desirable or appropriate and in furtherance of the purpose for which the Authority is established;
(f) invest funds of the Authority not currently required for its purpose in the manner provided in section 19; and
(g) receive grants or donations and make legitimate disbursements therefrom for the furtherance of the objects and functions for which the Authority is established.
Committees and delegation of powers
The Board may appoint committees from among its own members or otherwise, to carry out such general or special functions as may be specified the Board.
The Board may, resolution, either generally or in any particular case, delegate to any committee of the Board or to any member, officer, employee, or agent of the Authority, the exercise of any of the powers or the performance of any of the functions or duties of the Authority under this Act or under any other written law.
Except for purposes of the performance of his duties or the exercise of his powers under this Act, or where required under any other law to do so, any officer or any other employee or agent of the Authority shall not disclose any information which he has acquired in the course of the performance of his duties or the exercise
of his powers in accordance with this Act.
Any person who contravenes subsection (3) commits an offence and is liable on conviction to a fine not exceeding one hundred thousand shillings, or to imprisonment for a term not exceeding one year, or to both such fine and