Savings and credit cooperatives (Saccos) whose financial statements have been audited and submitted to the commissioner for cooperatives have been cleared to process payment of dividends and interest on deposits to members.
Acting Commissioner for Cooperative Development has further directed that Sacco officials whose terms expire before Annual General Meetings are held should continue serving until the next AGM is held.
The Ministry of Agriculture, Livestock Fisheries and Cooperatives through a circular issued by the commissioner for cooperative development has since suspended all Annual General Meetings from 15TH.
This follows a presidential directive against congregating in crowded places to contain coronavirus pandemic.
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Saccos and commercial banks have since been adhering to the directive, calling off AGMs until further notice.
Acting Commissioner for Cooperative Development Geoffrey Njango’mbe through the circular says, “the societies are hereby allowed to pay dividends and interest on deposits as long as their financial statement has been audited and submitted to the commissioner as per section 25(7) of the Cooperatives Act”.
However, deposit-taking Saccos will have to comply with section 35, subsection 1 which prohibits them from to acquire external borrowing in excess of 25% of its total assets unless the limit has been waived by SASRA.
The dividends will also have to be ratified by members in the next AGM.
The Saccos are further encouraged to use electronic money transfer to eliminate the risk of physical contact and overcrowding in the banking halls.
The dividend payment is expected to provide relief to members as COVID-19 impact income for many.