Talks on an inter- SACCO market are in high gear, as deposit-taking SACCOs seek to establish a regime where they can lend and borrow from each other at reasonable rates to offset their financial positions.
The Central Liquidity Fund (CLF) will allow SACCOs to lend and borrow money from each other thereby severing ties with Commercial banks whose loans are considered ‘expensive.’ This is seen as the first step in the eventual integration into the National Payments and Clearing system that could see commercial banks staring at close to Ksh2.33 billion ($21.37 million) loss in interest income on loans granted to the co-operative sector.
The fund will, among other things, empower Saccos to issue their own cheques to their members unlike now when they are restricted to processing bankers’ cheques on behalf of banks on a revenue-sharing basis, which favours banks. To realise this, the fund is set to be run and managed by SASRA with funding coming from both the Saccos and the government.
With the regulation and management under SASRA, this will also open up sources of funds contrary to the previous regime where *
Are we finally looking at the masterstroke in credit access for Kenyans?