MasiboLaw

---

Starting a Savings and Credit Cooperative Organization (SACCO) in Kenya can be a profitable and empowering venture for any group seeking financial independence and long-term sustainability. Whether you are a chama, welfare group, professional association, or community-based group, registering a SACCO and obtaining a license to operate as a Deposit-Taking SACCO (DT-SACCO) requires compliance with the laws and regulations set by the SACCO Societies Regulatory Authority (SASRA).

Below is a step-by-step legal guide on how to register a SACCO in Kenya and apply for a deposit-taking license.

---

Step 1: Formation and Registration of a SACCO Society

• Minimum Members: Gather at least 10 founding members with a common bond (e.g., profession, religion, community, employment).
• Draft a Constitution: Engage a lawyer in Kenya to prepare your SACCO’s Constitution in line with the Co-operative Societies Act (Cap 490) and other legal documents required to form a society.
• Register as a Society: File for registration with the Commissioner for Co-operative Development under the Ministry of Co-operatives and MSMEs Development.

---

Step 2: Application for Deposit-Taking License (DT-SACCO License)

Once your society is registered, you must apply to SASRA to obtain a license to operate as a Deposit-Taking SACCO. The following documentation is required:

1. Fit and Proper Application Documents
   • Engage a licensed advocate to prepare the necessary Fit and Proper documentation, which demonstrates that your SACCO’s officers and board members are credible and legally compliant. These documents must be commissioned by a Commissioner for Oaths.
2. Certified Copy of the SACCO’s Registration Certificate
   • This certificate must be issued upon registration with the Co-operative Department.
3. Verified Notification of the Registered Office Address
   • Provide a formal notice confirming the SACCO’s head office and its contact details.
4. Certified Copy of SACCO Bylaws
   • These must comply with the legal standards for SACCOs and be approved during registration.
5. Three-Year Business Plan and Feasibility Study
   • This should include:
     • Vision and mission statements
     • Nature and scope of business operations
     • Projected financials demonstrating profitability
     • Risk control and compliance mechanisms
     • Capital growth plans
6. Certified Minutes of the General Meeting Authorising Application
   • Extract the resolution where members approved the intention to apply for a deposit-taking license.
7. Name and Credentials of the Proposed Chief Executive Officer (CEO)
   • The CEO must meet the qualifications prescribed by SASRA.
8. Audited Financial Statements (Past 3 Years)
   • These statements must be certified and reflect the SACCO’s financial standing, if already operational.
9. Bank Statements Showing Adequate Capitalization
   • This demonstrates your SACCO’s financial readiness and liquidity position.
10. Application Fee
    • Pay the non-refundable application fee of KES 3,000 to SASRA.

---

Why You Should Work with a Lawyer When Registering a SACCO

Registering and licensing a SACCO in Kenya involves multiple legal and regulatory steps. Working with a law firm experienced in SACCO law and regulatory compliance ensures that:

• Your documents meet all statutory and SASRA requirements
• Your bylaws and constitution are tailored to your SACCO’s needs
• Your application has a higher chance of success on the first attempt
• You receive ongoing legal advisory services for governance, contracts, and compliance

---

Need Help Starting a SACCO in Kenya?

At MasiboLaw, we specialize in helping groups, chamas, and entrepreneurs navigate the legal process of SACCO registration and licensing in Kenya. Our experienced legal team will guide you from formation to full licensing under SASRA regulations.

📞 Contact us today for legal assistance in setting up your SACCO.
✉️ Email: info@masibolaw.co.ke