Nairobi, Kenya, Nov 22- The Sacco Societies Regulatory Authority (SASRA) has signed a Memorandum of Understanding (MOU) with the Directorate of Criminal Investigations (DCI) to formalize the establishment of the Sacco Societies Fraud Investigation Unit (SSFIU).
Speaking during the MOU signing ceremony, SASRA Chairman John Munuve said the establishment and operationalization of the Fraud Investigations Unit will complete the cog of the supervisory framework of SACCOs in Kenya, which was initially largely reliant on prudential supervision.’
‘’ We view this MOU as an important and serious commitment to work closely with DCI in transforming the SACCO subsector,” Munuwe said.
Munuve disclosed that the SSFIU is and will remain critical in complementing the prudential supervision conventionally undertaken by SASRA’s technical staff, by taking-up identified cases of fraudulent conduct during prudential supervision and investigating the same.
“A time has come when the safety of members’ savings and deposits in Saccos must be guaranteed and always assured. This is the only way in which citizens will use or consider using Saccos as an alternative and worthy investment destinations for their savings,” added Munuve.
He concluded by revealing that the formed Unit is expected to collaborate with the Authority to develop and implement robust market surveillance and monitoring mechanism to prevent frauds or disrupt planned fraudulent activities in SACCOs.
Speaking at the MOU signing ceremony, DCI representative John Gachomo urged stakeholders to within the SACCO subsector to fully embrace the newly created Unit as a lever to the transformation of the SACCO movement in Kenya.’’
“It is important to stress that in today’s economy, financial transactions are heavily conducted using technology and other digital services. And SACCOs have not been left behind in this,” he said.
The unit will be domiciled at SASRA and is expected to detect and prevent fraud as part of improved corporate governance in the Sacco sector in line with SASRA’s Strategic Plan for 2018-2022.
