THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA
(Established under the Accountants Act, Laws of Kenya)
Savings and Credit Cooperative Societies (SACCOs) Sector Conference
Theme: Enhancing efficiency and compliance in the Sacco Sector in Kenya
Date: 27th – 29th July 2022
Time: 8.30am – 4.00pm
Venue: Lake Naivasha Resort
Over the years, saving and credit cooperatives (SACCOs) have gained immense popularity in the country. Cumulatively, the SACCOs in the country contributed over 30% of the country’s GDP, according to a recent report by the cooperatives department of the State. This clearly implies the immense popularity of SACCOs in Kenya and the big role the sector plays in the economic growth and development of this country.
The sector continues to play a big part even in the employment and socio-economic fronts with the latest figure indicating that the SACCO sector alone employs more than 300,00 people directly and many others indirectly. This is besides providing opportunities for self-employment to many other people. SACCOS create employment opportunities in several unique ways. Firstly, they provide direct wage employment to the people working with the cooperative societies. They also encourage savings amongst their employees which acts as collateral security to enable them to acquire loans and other funds for investment.
It is also critical to note that the need for affordable financial services for people has grown dramatically. Although the SACCOs lead sustainable and inclusive growth, they still face many challenges to meet the fast-growing financial needs of the societies and communities in which they operate. However, it is believed that SACCOs can take advantage of the emerging technological trends and digitize their operations to enable them to provide better solutions to their members and the community. Consequently, they will gain more importance and financial significance in the Kenyan economy.
The major challenges inherent in the cooperative movement in Kenya include but not limited to poor governance and limited transparency in the management of cooperatives, lack of capacity in management, effective market intelligence and market research, a weak capital base and infrastructural weaknesses.
To deal with the various challenges identified in the sector, it is noteworthy to point out that there’s need for attention and focus from the government, policy makers and other stakeholders. To support good corporate governance among SACCOs and promote best practices in management, financial reporting is key towards achieving these objectives.
Financial reporting encompasses the disclosure of financial information to management and the public about an organization’s performance over stated periods of time. Financial reporting for SACCOs in Kenya is provided for under the Constitution of Kenya Section 226, Cooperative Societies Act Cap 490, International Financial Reporting Standards (IFRS) and the SACCO Societies Act No 14 of 2008 among other underlying legal frameworks. SACCOs therefore must keep proper records that conform to these set frameworks and guidelines.
Taxation of income generated by Saccos is guided by section 19A of the Income Tax Act, Cap 470.It is however important to note that there are other taxes also applicable to Saccos which are guided by other Acts such as the VAT Act, the Excise Duty Act etc. In the case of a designated co-operative society for instance, other than a designated primary society, which is registered and carries on the business as a credit and savings co-operative society; chargeable income for the year shall be its income for the year after deducting aggregate bonuses and dividends declared and distributed to the members during the year. Owing to the required interpretations and application of the tax principles, it is crucial for SACCO Sector players to understand the relevant tax obligations and laws necessary in the course of their day to day operations.
To this end, the Institute will host a three-day Conference which will focus on the contribution of the SACCOs to the economy and seek to find responses and recommendations to practical ways of addressing the challenges facing the Sector in Kenya.
The Conference will mainly focus on the following areas;
- Enhancing financial reporting for SACCOs in Kenya
- Regulation of the SACCO sector to enhance transparency and accountability
- Governance perspectives and experiences from the SACCO sector in Kenya
- Feedback and updates from the regulator towards enhancing compliance levels for SACCOs
- Automation and leveraging of technology to improve the operations and effective management of SACCOs in Kenya
- Taxation challenges facing the SACCOs in Kenya
The topics for discussion will include:
- An Overview of financial reporting requirements in SACCOs
- IFRS 7 – Financial Instrument Disclosures
- IAS 37 – Provisions, Contingent Liabilities and Contingent Assets
- IAS 19 – Employee benefits
- IAS 40 – Investment Property
- IFRS 9 – Financial Instruments
- Effective governance and leadership for SACCOs in Kenya – a practical approach
- Tax compliance and key taxation principles under the Income Tax Act Cap 470, VAT Act, Excise Duty Act among other relevant guidelines
- Assessing the impact of cyber-risk and technology threats for SACCOs
- Financial inclusion role of Saccos in Kenya- An analysis of various research findings
- Enhancing operations and the internal control environment for SACCOs in Kenya
- Sustainable business practices, sustainability, and social impact for SACCOs in Kenya
- Risk based supervision and Enterprise Risk Management (ERM) implementation for SACCOs
- Impact of Covid 19 on the sustainability and business continuity of SACCOs
- Leveraging technology to enhance the SACCO Sector operations
Continuous Professional Development Units (CPD Units):
Members of ICPAK and reciprocating professional bodies will be 20 CPD Units upon successfully attending each session of the Conference sessions.
Staff in the SACCO Sector, Chief Finance Officers, Finance Directors and Managers, Heads of Internal Audit Functions, Private and Public Audit Practitioners, Engagement Partners and Key Audit staff, Banking, Financial services sector Accountants, Risk and Compliance professionals, Tax Practitioners, and Professionals in Academia.
|Associate Members||KShs 35,000 per Delegate|
|Full Members||KShs. 45,000 per Delegate|
|Non-Member||KShs. 55,000 per Delegate|
**The cost caters for training fee, training materials, certificate and meals during the conference. Please note delegates are required to make their own travel and accommodation arrangements.
We call on Seminar participants to note that booking for is available only online at www.icpak.com/events and will close two days before the start of the Conference sessions. Delegates are reminded to note that online booking for training sessions is mandatory. This is available either online at www.icpak.com/events or on the ICPAK Live – A smart phone-based application that is available from google store.
National Industrial Training Authority (NITA) Reimbursement:
The Institute is registered as a trainer with National Industrial Training Authority. The Institute’s registration number is DIT/TRN/47. Participants who are registered levy contributors should apply to NITA for reimbursement of their fees. Please note that this is applicable for Kenyan citizens only and subject to NITA regulations. Remember that to qualify you should apply to NITA for approval prior to the date of the conference. Further details can be obtained from their website (www.nita.go.ke