The umbrella body of savings and credit co-operative societies (saccos) is opposed to the imposition of new taxes by county governments. The lobby says the move could reverse gains made by the co-operative movement.
The Kenya Union of Savings and Credit Co-operatives Limited (KUSCCO) warns the move by some counties to introduce new taxes and rules to govern registration and operation of saccos within their jurisdictions would adversely affect the sector’s growth.
“We are unhappy about taxation laws that seek to impose a 10 per cent penalty fee for every Front Office Savings Activity (FOSA) and we will also oppose any attempt to locally register saccos with a national presence,” said KUSCCO Managing Director Mr George Ototo.
“The sector should retain and encourage regulatory uniformity and ranking so as to effectively benchmark with the best globally,’’ said Mr Ototo during a press briefing on the upcoming Sacco leaders convention sponsored by the organisation to take place in Nairobi next Tuesday.
He, however, pointed out that KUSCCO had come up with a strategic collaboration with county governments on how best to address emerging challenges and also take advantage of opportunities presented by devolution.
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“During the convention we will demonstrate how collaborations with counties will enhance the sector’s growth and contribute to the overall national socio-economic development,” he said.