Kenya VP calls for transparency in SACCOs

April 23, 2010 12:00 am

, NAIROBI, Kenya, Apr 23 – Vice President Kalonzo Musyoka has urged management committees of the SACCO societies in the country to be prudent and transparent in their operations in order to safeguard and expand members’ investments.

Mr Musyoka said SACCOs played an important role in uplifting living standards of members through issuing loans for housing, school fees, and medical care among other necessities.

The VP who spoke at the 36th Annual Delegates Meeting of the Magereza SACCO society at Nairobi West Prisons Officers Mess, said that the societies complemented the government efforts in the war against poverty especially in the rural areas.

The VP commended the Magereza SACCO management for maintaining a high return on shareholders’ investments, noting that the dividend payout of
9.6 percent from the society was among the highest in the country.

Mr Musyoka observed that the society has a share capital of Sh1.8billion and a loan portfolio of Sh1.7billion which he said was a remarkable achievement.

He urged the members to increase their shares to enable them borrow more, and as a fall back once they retire.

At the same time, Mr Musyoka reiterated that the Prisons Reform programme is still on course, in a bid to improve their working and living conditions.

On the new Draft Constitution, the Vice President urged Kenyans to register in large numbers to be able to participate in the referendum.

He reiterated that the referendum should not be allowed to divide Kenyans, saying the country had great expectations on the new law.

Assistant Minister for Cooperative Development Jebii Kilimo called on stakeholders in the movement to strictly adhere to the provisions of the SACCO Societies Act warning that failure to do so will expose them to penalties.

She however commended players in the movement for making Kenya the best example in Africa and seventh in the world in SACCO management, noting that the movement controls a share capital of Sh180billion and assets worth Sh200billion.

Magereza SACCO Society Chairman Francis Makathimo said the society was pursuing an aggressive expansion plan through which it will open more branches across the country.

The plan will also involve new packages like Micro-finance, as well as the operation of Front Office Savings Accounts (FOSA) and Bank Office Services Account (BOSA).

The function was also attended by the Home Affairs Permanent Secretary Dr
Ludeki Chweya, Commissioner of Prisons Isaiah Osugo and the Deputy Director of Cooperatives Geoffrey Karuku among others.


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