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Saccos inching closer to lending each other

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. Advertisement 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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