Industries
SACCO audit and accounting for member-owned societies
Partner-led SACCO audit, with accounting and tax support for cooperative societies and coffee, tea and dairy cooperatives, from our offices in Nairobi and Mombasa.
Adamjee Auditors works with SACCOs and cooperatives alongside SMEs, large corporates and NGOs, from offices in Nairobi's Westlands and in Mombasa.
SACCO accounts are not ordinary company accounts. Member deposits and member shares have to be recorded separately, loans have to be classified by risk and provided for, and dividends are calculated on the net surplus once the audit is done. Deposit-taking SACCOs are also governed by SASRA under the SASRA Act, 2010, which brings monthly returns on loans, shares and reserves, capital adequacy and liquidity thresholds, and an independent annual audit by licensed auditors.
Farming cooperatives in coffee, tea and dairy face a different pressure: income follows the harvest and buyer payments, while labour, transport, inputs and storage are paid for all year. We audit to ISA and IFRS, keep ledgers reconciled and audit-ready, prepare and file returns with KRA, and give boards the budgets and management information they need to account to their members.
Sector challenges
Where SACCO and cooperative accounts come under pressure
Deposits, shares and loans kept apart
Member deposits and member shares must be recorded distinctly, and savings, deposits and loans reconciled every month. Misclassifying member deposits against loans is one of the common pitfalls our SACCO guidance flags.
Loan classification and provisioning
SASRA guidelines call for every loan to be classified by risk category, with provisioning for doubtful debts. Disbursements, repayments, interest accruals, non-performing loans and guarantee records all have to stand up at audit.
Dividends from an audited surplus
Dividends follow the net surplus after audit, need board approval and must leave reserves in place for regulatory liquidity ratios. Late SASRA returns or dividend schedules are a common issue, and non-compliance triggers regulatory penalties.
Seasonal income in farming cooperatives
Harvest-driven income, weather and commodity prices make cash flow uneven. Cash accounting can hide unpaid obligations, while poor record keeping and weak controls raise the risk of member funds being misused.
How we help
Services for SACCOs and cooperatives
Audit & Assurance
Statutory and external audits to ISA and IFRS, and internal audits of the controls cooperatives rely on: segregation of duties, payment approvals, monthly reconciliations and inventory checks.
Accounting Services
Member contribution, crop delivery, supplier, loan repayment and dividend ledgers kept reconciled and audit-ready, with management accounts that track performance against budget.
Tax Compliance
Returns prepared and filed with KRA on interest and investment income, with expenses supported by eTIMS-validated documentation so deductions hold up.
CFO & Business Advisory
Seasonal budgets with budget-versus-actual reviews, cashflow forecasting, board reporting and stronger internal controls and risk oversight.
Payroll
Staff payroll processed with the correct PAYE, NSSF, SHIF and other statutory deductions every cycle.
Getting ready for the annual audit
Loans and savings
Review every loan and savings record before fieldwork begins.
Shares and deposits
Reconcile member shares and deposits, keeping the two distinct.
Expenses
Support each expense with an eTIMS-validated receipt.
Dividends
Prepare dividend computation schedules with the board approvals on file.
Further reading
Guidance from our articles
SACCO accounting and SASRA compliance
Member equity, loan classification, dividend computation and a step-by-step checklist for the SASRA audit.
Read the article →Cash vs accrual accounting for farming cooperatives
Which method suits coffee, dairy and tea cooperatives, and the ledgers and internal controls each one needs.
Read the article →Financial budgeting for agribusiness cooperatives
Building a seasonal budget, getting board approval and reporting variances against actual results.
Read the article →Anti-money laundering compliance in Kenya
SACCOs appear among the examples of reporting institutions that may have customer due diligence and reporting duties under POCAMLA.
Read the article →Common questions
SACCO and cooperative questions, answered
Get in touch
Talk to us about your SACCO or cooperative
Speak to our team in Nairobi or Mombasa about your audit, accounts or tax. Tell us what you need and our team will respond promptly.
Our team will respond promptly.
