Sacco Societies Act
2. Interpretation
2. Interpretation
In this Act, unless the context otherwise requires—"associate" means—(a)in relation to a company or other body corporate—(i)its non-operating holding company or its subsidiary;(ii)a subsidiary of its non-operating holding company;(iii)a holding company of its subsidiary;(iv)any person who controls the company or body corporate whether alone or with his associates or with other associates of it;(b)in relation to an individual—(i)any member of his family;(ii)any company or other body corporate controlled directly or indirectly by him whether alone or with his associates; anda person shall be deemed to be a member of a family if he is the parent, spouse, brother, sister, child, uncle, aunt, nephew, niece, stepfather, stepmother, stepchild and adopted child of the person concerned, and in case of an adopted child his adopter or adopters;"Board" means the Board of the Authority constituted under section 6;"board of directors" has the meaning assigned thereto in the Co-operative Societies Act (Cap. 490);"Board of Trustees" means the board of trustees established by section 56 of this Act;"by-laws" has the meaning assigned thereto in the Co-operative Societies Act (Cap. 490);"Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to Sacco societies;"Central Bank" means the Central Bank of Kenya established by the Central Bank of Kenya Act (Cap. 491);"chief executive officer" means the chief executive officer of the Authority;"Commissioner" has the meaning assigned thereto in the Co-operative Societies Act (Cap. 490);"control" in relation to the term "associate" includes—(i)ability to influence whether directly or indirectly, the composition of the board of directors of a deposit-taking Sacco society; or(ii)holding, directly or indirectly, whether personally or through a holding company or subsidiaries thereof, or in any other way, an aggregate of twenty five per centum or more of the voting power of a company or body corporate, whether alone or with associates or of the body corporate."core capital" means the fully paid up members' shares, capital issued, disclosed reserves, retained earnings, grants and donations all of which are not meant to be expended unless on liquidation of the Sacco society;"co-operative society" has the meaning assigned to it in the Co-operative Societies Act (Cap. 490);"deposit" means a sum of money received or paid on terms under which it shall be repaid, with or without interest a return or premium, and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it;"Deposit Guarantee Fund" means the Deposit Guarantee Fund established by section 55;"deposit-taking business" means—(a)a Sacco business in which the person conducting the business holds himself out as accepting deposits on a day-to-day basis; and(b)any other activity of the Sacco business which is financed, wholly or to a material extent, by lending or extending credit for the account and at the risk of the person accepting the deposit, including the provision of short-term loans or funding or in compliance with the Islamic law;"director" has the meaning assigned to it in the Co-operative Societies Act (Cap. 490);"dormant account" means a savings or current account maintained by a Sacco society which is not operational, or has had no transaction by the depositor within the maximum period prescribed;"General Fund" means the fund established by section 16;"international financial reporting standards" means the international accounting standards set by the International Accounting Standards Board;"land" includes freehold and leasehold land in Kenya and all buildings and permanent improvements and premises thereon;"levy" means the levy imposed under section 15;"licence" means a licence granted under section 25;"member" has the meaning assigned to it in the Co-operative Societies Act (Cap. 490);"non-deposit taking business" means Sacco business, other than desposit-taking business;"officer" in relation to a Sacco society, means a director or any other person, by whatever name or title he may be called or described, who carries out or is empowered to carry out functions relating to the overall direction in Kenya of that deposit-taking Sacco society or takes part in the general management thereof in Kenya;"place of business" means a Sacco society's head office, branch, or outlet, including a mobile unit, marketing office, automated teller machines or agency of a Sacco society and which is open to the public;"Sacco business" means financial intermediation and any other activity by a Sacco society based on co-operative principles and in accordance with this Act, or in compliance with Islamic law, by way of—(a)receipt of withdraw-able deposits, domestic money transfer services, loans, finance, advances and credit facilities; or(b)receipt of non-withdrawable deposits from members and which deposits are not available for withdrawal for the duration of the membership of a member in a Sacco society and may be used as collateral against borrowings providing finance and domestic money transfer services;"Sacco society" means a savings and credit co-operative society registered under the Co-operative Societies Act (Cap. 490);"share capital" means members' equity in the form of issued and fully paid up shares of common stock;“terrorism financing” has the meaning assigned to under the Prevention of Terrorism Act (Cap. 59B);"total capital" means the total sum of core capital and supplementary capital of a Sacco society;"total deposit liabilities" means the total deposits in Kenya in any Sacco society which are repayable on demand or after a fixed period or after notice under agreed terms and conditions;"Tribunal" has the meaning assigned to it in the Co-operative Societies Act (Cap. 490);"trustees" means the trustees of the board of trustees of the Deposit Guarantee Fund constituted under section 58.[Act No. 15 of 2017, s. 52, Act No. 16 of 2018, s. 2, Act No. 34 of 2022, s. 2, Act No. 6 of 2025, Sch.]Case law referring to this provision
Source: Kenya Law