This archive report was first published on 7 January 2020.
On January 7, 2020, the High Court delivered a 60-page judgement that found the amendments to the Saccos Societies Deposit Levy order were done in consultation with all stakeholders.
Justice Weldon Korir ruled that the regulator, Sacco Societies Regulatory Authority (Sasra), had taken extensive measures to ensure stakeholders were involved in the process.
The amended law requires Saccos to pay at least 0.175 per cent of the total members' deposits to Sasra, capped at Sh10 million annually.
Kenya Union of Savings and Credit Co-operatives (Kuscco) had complained that the increased levy amounted to double taxation, but the judge found that Kuscco had participated in consultative forums called by Sasra.
“The respondent (Sasra) took extensive measures to ensure stakeholders were involved in the process. It is, therefore, my conclusion that the respondent did not violate the right to fair administrative action,” Justice Korir ruled.
Kuscco has vowed to appeal the case, arguing that the levy would cripple its members and affect their morale and willingness to make deposits.
