The Effect of Sacco Policy Framework on the Sacco Performance in Kenya

The SACCO regulatory Authority (SASRA) was established by the act of government in 2008 under the SACCO Societies Act of 2008 and came into effect in September 2009. The authority is mandated with the following mandate: License SACCO Societies to carry out deposit taking business; Regulate and supervise deposit taking SACCO Societies; Manage the Deposit Guarantee Fund under the trustees appointed under the Act; Advise the Minister on national policy on deposit taking SACCO Societies in Kenya. The aim of this study was to look at the impact SASRA has had on Sacco performance since its inception. The study was conducted on the 50 deposit taking Saccos in Nairobi. Data was collected from primary source on structured questionnaires as well as secondary sources. In administering the research instruments, the researcher used self-administered survey by use of the mails and drops and pick letters. Based on this study, it can be concluded that, SASRA has greatly impacted on the Sacco performance in terms of outreach and sustainability and performance of SACCOs in Kenya. Most Saccos reported recent improvement in their performance both in membership, portfolio and loan cycle.