A draft bill requiring co-operative societies in Nairobi (Saccos) offering financial services to maintain a minimum of Sh12.5 million in their accounts is out.

Saccos handle over Sh70 billion annually and provide financial services to a large part of the population. Chairman of Kenya Bankers Savings and Co-operative Societies (KBSCS), Mr Ntoitha M'Mithiaru, said regulation was necessary since Saccos were fast replacing commercial banks as the principal providers of financial services in rural areas.

The draft bill proposes that all Saccos contribute to a new savings guarantee fund that will safe-guard depositors' money. It further wants a central liquidation fund set up to bail out financially troubled Saccos. The committee recommends that they be given five years within which to comply. http://allafrica.com/stories/200401220172.html