Nairobi, Sept. 14 -- The regulator wants small Savings and Credit Cooperative Societies (Saccos) to merge as top 20 entities control more than half of the total deposits.
Sacco Societies Regulatory Authority (Sasra) says that large Saccos are deepening the control of deposits- a key source of lending- as small ones struggle to mobilise deposits.
The regulator says in latest annual report that mergers among deposit taking (DT) Saccos will help bring stability and lower costs of operation.
"A time has thus come for the Sacco subsector to start policy conversations and dialogues on voluntary consolidation and amalgamations of the many small DT-Saccos, in order for them to remain competitive and benefit from associated comparative advantages...