SACCOs operating front office services are required by law to comply with the regulations stipulated in the SACCO societies Act enacted in the year 2008. The authority is mandated to:license, regulate and supervise the SACCO societies. This study explored the effect of SASRA regulations on the Returns of SACCOs. This study focused on regulations specifically involving, liquidity and core capital as they affect returns directly. The study considered the entire population of deposit taking SACCOs in North and Central Rift Regions. The researcher compiled data from 2006-2013 to carry out the study. The study used Secondary data which was collected from financial statements, reports on liquidity, capital adequacy and balance sheet from SACCOs registered under SASRA. The study used a descriptive research design where a census was taken of all the 18 SACCOs in the North and Central rift regions, the data was reviewed and analyzed using SPSS 21.The chow test model that follows an F test was conducted to determine if the change in policy caused a significant effect on the SACCOs. From the findings of the study the F critical value at five percent significance was greater than F values therefore we do not reject the null hypothesis indicating that there are no structural breaks in the model. We can therefore conclude that SASRA regulatory body has had no significant effect in DTS in the North and Central Rift Regions. There is therefore need to assist SACCOs learn how to cope with the regulatory pressures involved with meeting the requirements how to restructure its operations, reduce costs, grow its returns and come up with strategies to keep pace with shifts in government policies and global economy. SASRA entity should assist the DTS in all aspects possible to come up with strategies that will ensure their existence. This study has been significant in that the stakeholders are now aware of the regulations that should be enhanced and maintained; however, from the findings it is evident that there is need to revise some regulations to boost the profitability ratios.
