Registered address of co-operative society
Every co-operative society shall have a registered address to which notices and communications may be sent and shall send to the Commissioner notice of every change of address within one month of the change.

Society to keep a copy of the Act and by-laws at registered office
Every co-operative society shall keep a copy of this Act and of the rules made thereunder and of its own by-laws and a list of its members (excluding details of nominees and shareholdings) at its registered office and shall keep them open for inspection by any person, free of charge, at all reasonable times during business hours.
Estimates of income and expenditure
For each financial year, the Committee of a co-operative society shall cause to be prepared estimates of the society’s income and expenditure including recurrent and capital estimates for approval by the general meeting at least three
months before the end of the preceding financial year.

 Account and audit
Every co-operative society shall keep proper accounts which shall—
(a) be prepared in accordance with International Accounting Standards;
(b) reflect the true and fair state of the co-operative society’s affairs; and
(c) explain the co-operative society’s transactions including—
(i) all sums of money received and paid by the co-operative society and the reasons thereto;
(ii) all sales and purchases of goods and services by the co-operative society; and
(iii) all assets and liabilities of the co-operative society.
The books of accounts shall be kept at the registered office of the co-operative society or at such other place as may be determined by the co-operative society and shall at all times be available for inspection by members
of its supervisory committee and the auditor.

It shall be the duty of every co-operative society to cause its accounts to be audited at least once in every financial year by an auditor appointed under subsection (4).
The auditor shall be appointed at the annual general meeting from a list of auditors approved by the Commissioner, in consultation with the Institute of Certified Public Accountants of Kenya.
Where at an annual general meeting no auditor is appointed, the
Commissioner may appoint a person to fill the vacancy and the remuneration of the person so appointed shall be borne by the co-operative society.
The accounts referred to in subsection (3) shall—
(a) conform with International Financial Reporting Standards;
(b) include the following records—
(i) a balance sheet;
(ii) an income and expenditure account; and
(iii) a cash flow statement;
(c) be approved by the Committee; and
(d) be authenticated by at least three Committee members including the chairman of the co-operative society.
No auditor shall present the audited accounts of a co-operative society to the members at a general meeting unless the accounts have previously been submitted to the Commissioner in such form as may be prescribed.
The auditor shall submit the audited accounts to a general meeting within four months after the end of the accounting period and shall include his opinion as to whether or not the co-operative society’s business has been conducted—
(a) in accordance with the provisions of this Act and, whether the books of accounts kept by the co-operative society are in agreement therewith and give a true and fair view of the state of the affairs of the society; and
(b) in accordance with the co-operative society’s objectives, by-laws and any other resolutions made by the society at a general meeting.
The auditor shall have the right to—
(a) attend any general meeting of the co-operative society and be heard on any matter which concerns him as an auditor;
(b) receive all notices and other communications relating to any general meeting which a member of the co-operative society is entitled to receive;
(c) access, at all times, any accounting records, books or documents of the co-operative society as may be necessary for the purpose of carrying out his duties as an auditor and may at the time of his audit—
(i) summon any officer, agent or member of the co-operative society for the purpose of obtaining information on the
transactions of the co-operative society or management of its affairs;

(ii) require the production of any book, document, cash or securities relating or belonging to the co-operative society by any officer, agent, trustee or member having custody of such book, document, cash or securities;
(iii) demand such other information or explanation from any officer of the co-operative society as may be necessary for the performance of his duties as an auditor.
Every co-operative society shall, at such time and in such form as may be prescribed, file with the Commissioner an annual return together with a certified true copy of the audited accounts and balance sheet of the society for
each period of twelve months.
Where a co-operative society fails to cause its accounts to be audited within the prescribed period in respect of its business for the previous financial year, members of the Committee shall automatically lose their positions at the
next general meeting and shall not be eligible for re-election for three years unless the Commissioner is satisfied that the failure was due to circumstances beyond their control.
For the purposes of this section, “International Accounting Standards” and “International Financial Reporting Standards” means the standards established by the Institute of Certified Public Accountants of Kenya.

Production of books and other documents

Any officer, agent, servant or member of a co-operative society who is required by the Commissioner, or by a person authorized in writing by him to do so shall, at such place and time as the Commissioner may direct, produce all moneys, securities, books, accounts and documents belonging to or relating to the affairs of such society which are in the custody of such officer, agent, servant or member.

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