Kenya: Bill seeks to block Saccos from doing money transfers

On 19 June 2008, it was reported that a new bill, which is under discussion in the Parliament proposes to ban Savings and Credit Co-operative Societies (popularly known as Saccos) from money transfer business, from wholesale and retail trade and also from investing in enterprise capital. On passing of this bill, it is expected that Saccos would focus more on small self-help loans.

Kenya Union of Savings and Credit Co-operatives (KUSCCO) Managing Director, Carilus Ademba said “Outright barring of Saccos from operating money transfer business will limit the growth of Sacco societies and give advantage to banks.”