Sacco regulator to ban auditors over delayed submission of statutory reports
By Faith Lagat, October 27, 2025The Sacco Societies Regulatory Authority (SASRA) has announced stringent measures targeting external auditors and audit firms that fail to submit mandatory statutory reports.
Sasra has warned that any auditor who has not submitted the 2024 statutory report will be struck off its register unless they comply within 30 days. Removal from this list is a permanent bar from auditing regulated Saccos in Kenya.
“Any failure to submit the Statutory Report for any financial period of auditing, and within the prescribed timelines, shall result in a permanent removal from the Annual List of Registered and Approved External Auditors for Regulated SACCO Societies,” part of the statement read.
Concerns over delayed reports
SASRA expressed concern over auditors’ failure to submit reports for the financial year ended December 2024 and outlined three key actions.
First, the authority reminded all external auditors and audit firms appointed by regulated SACCO societies that it is their statutory duty to submit the Statutory Report as provided in Section 44(3) of the Sacco Societies Act and related regulations, to be received by the Authority within four months after the end of the financial year.
Second, SASRA requires all external auditors and audit firms that provided auditing services to any regulated SACCO society for the financial year ended December 2024, and have not yet submitted the reports, to submit the prescribed Statutory Report within thirty days from the date of the notice.
Third, the regulator “Puts on notice all external auditors and audit firms that any failure to submit the Statutory Report for any financial period of auditing, and within the prescribed timelines shall result in a permanent removal from the Annual List of Registered and Approved External Auditors for Regulated SACCO Societies as provided in Section 45 of the Act as read with the Regulations made thereunder,” Sasra’s acting CEO, David Sandagi, said in the circular.
Call to comply
It further notes that this circular is issued without prejudice to any action of removal from the aforesaid list, which the Authority has commenced and/or may commence against any external auditor and/or audit firms for failure to submit the prescribed Statutory Report and/or on any other grounds whatsoever.
The report also, must detail the solvency of the SACCO Society’s business, including whether there are reasonable grounds to believe that the SACCO Society is insolvent or at risk of becoming insolvent, any violation of prudential standards or license conditions, any evidence of irregularities or illegal acts by directors, employees, or the SACCO, and the failure of officers to provide necessary information.
It must also assess whether management practices and procedures safeguard members’ assets and ensure financial stability, including internal controls such as audits and committees.
The statement concludes with a call to comply.”Kindly take note and comply accordingly.”