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Blow to Kenyan banks as Saccos close in on own money market


The East African
Monday February 08 2021
According to officials, the Sacco fund will be run and managed by Sasra with funding coming from both the Saccos and the government - edging out banks from the sector. PHOTO | FILE
Summary
Under the new regime, Saccos will run their own inter-Sacco market where they can lend and borrow from each other at reasonable rates.
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Kenyan Savings and Credit Co-operative Societies (Saccos) are moving closer to the implementation of an inter-Sacco lending market and eventual integration into the National Payments and Clearing system in a development, leaving commercial banks staring at close to Ksh2.33 billion ($21.37 million) loss in interest income on loans granted to the co-operative sector. ....

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