ADVOKS GLOBAL · KENYA
The Co-operative Societies Rules
52. Establishment of front office
Edition: 2022-12-31 · In force
52. Establishment of front office
(1)Every co-operative society operating or intending operate front office services, shall after a resolution of the general meetings apply in writing to the Commissioner for authorization.(2)In considering an application for authorization made under sub-rule (1), the Commissioner shall take into account the—(a)location of the front office;(b)minimum capital (capital base) of the society;(c)risk management systems;(h)such other factors as may be necessary.(3)All co-operative societies operating front office services shall-(a)maintain a minimum liquidity at ten per cent of the deposits;(b)maintain a minimum capital adequacy and reserves at ten per centum of its total liabilities;(c)maintain such other prudential standards as may be directed by the Commissioner in writing from time to time;(d)make provision for bad and doubtful debts before any surplus is declared;(e)ensure that the provision for bad and doubtful debts made under paragraph (a) of this sub-rule complies with such guidelines as may be prescribed by the Commissioner.(5)The Commissioner may—(a)require a co-operative society to submit statistics regularly; and(b)collect such data and other information as may be necessary for the protection of members funds.