The rules that govern your SACCO: Acts, regulations and by-laws

Every SACCO sits inside a framework of rules. Some come from the law and the regulator, and some the SACCO writes for itself. Knowing which rule applies, and keeping each one current, is one of the quietest but most important jobs a board and management do.

Why it matters: a SACCO that lets its by-laws drift, ignores a reporting deadline, or lends outside its own policy risks fines, suspension, or de-registration. Staying compliant is what keeps the licence to operate and protects members' savings.

The law: acts and their regulations

The top layer is national legislation, which you must follow whether you like it or not.

• In Tanzania the Cooperative Societies Act, 2014 (with its Regulations) governs how a SACCO is registered, run and dissolved. Uganda and Kenya have their own equivalents (the Cooperative Societies Acts and rules in each country).
• Because a SACCO takes deposits and lends, it also falls under microfinance law. In Tanzania that means the Microfinance Act, 2018/2019 and the SACCOS (Microfinance) Regulations, 2019, which set tiers, capital and prudential standards.
• An Act gives the broad law; the Regulations spell out the detail, such as limits, forms, ratios and deadlines. Both bind you.

Who regulates you

Two authorities matter most, and it pays to know which does what.

• The Registrar of Cooperatives, the "Mrajis", registers the SACCO, holds its by-laws on record, and oversees cooperative compliance and the AGM.
• The microfinance regulator or central bank supervises SACCOS as microfinance institutions. In Tanzania this is the Bank of Tanzania; Uganda and Kenya use their own SACCO regulators (UMRA, SASRA). They set prudential rules and receive returns.

Your by-laws, the SACCO's constitution

By-laws are the rules the members themselves adopt at the AGM, within what the law allows.

• They are legally binding once registered, and they cover membership, shares, the board, committees, meetings and how surplus is shared.
• Keep them current. When members vote to change a by-law at the AGM, the change must be lodged with the Registrar. An out-of-date registered copy is a compliance gap.

The policy manual, your internal rulebook

Below the by-laws sits the policy manual: the day-to-day rules approved by the board.

• Savings, credit, finance, cash handling and HR should each have a written, board-approved policy.
• Review it regularly. Policies should be revisited at least yearly so they match current practice, the law and CAMS controls.
• Follow it in practice. A policy ignored is worse than none, so lend, spend and hire by the manual, every time.

Comply and report

Compliance is proven by what you file and how you behave, not by intention.

• Meet every deadline. Submit audited accounts, returns and prudential reports on time to the Registrar and the regulator.
• Hold the AGM and file its records. A timely AGM with elections and approved accounts is itself a compliance duty.

Quick checklist

• Keep a current, registered copy of your by-laws and lodge any AGM changes with the Registrar
• Confirm which Acts and regulations apply to you in your country and tier
• Ensure savings, credit, finance, cash and HR policies are written and board-approved
• Review the policy manual at least once a year and act within it
• Diarise every reporting deadline for the Registrar and the microfinance regulator
• Hold the AGM on time and keep its minutes and approved accounts on file