Kenyan Saccos on the verge of joining national payment system
The need for Saccos to participate in the national payments system has been informed by their meteoric expansion over the past decade, with their assets of the target surpassing that of some small banks. TEA GRAPHIC
Savings and credit co-operative societies in Kenya are set for integration into the mainstream of financial service providers, a development that could see commercial banks lose third-party businesses.
An umbrella body of financial sector regulators has given the go-ahead for Saccos to lend money to each other through a Central Liquidity Facility (CLF). This is the first step towards Saccos joining the national payments system in their own right.
