By John Kariuki
It’s a new dawn for Deposit-taking Savings and Credit Cooperative Societies (Saccos) for they inched closer to setting up a central liquidity facility to enable them to lend to each other.
This will help the Saccos meet unexpected or unusual short-term cash flow shortfalls.
The Sacco Societies Regulatory Authority chief executive Peter Njuguna says he is very happy that the legal framework has been endorsed by Cabinet.
“We are now hopeful that the incoming Parliament will usher in the inter-Sacco lending window.
Mr Njuguna adds, “The proposed establishment of the Central Liquidity and Shared Technology platform, which has been on the cards since 2016, and is expected to enhance operational efficiency in deposit mobilization amongst Saccos and hence reduce cost of funds in the medium to long term, while improving operating liquidity, a key factor for sustained and competitive lending to members.”