NAIROBI, Kenya, Sep 13 – Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development Cabinet Secretary (CS) Wycliffe Oparanya has promised to amend existing law to strengthen Sacco regulatory frameworks.
The CS announced the government’s plan to introduce a new cooperative bill to address legal and mismanagement loopholes in the sector.
He emphasized the crucial role that Saccos play in driving economic development, having mobilized over Sh1.2 trillion in savings, disbursed Sh1 billion in loans, and amassed an asset base of Sh1.7 billion.
“By strengthening their governance and providing them with the necessary tools and support, we can unleash their full potential,” CS Oparanya spoke during a press briefing with the Kenya National Police DT SACCO yesterday.
Oparanya also questioned rising cases of poor mismanagement of Saccos, putting at risk members hard-earned savings.
An audit done by the state in 2022 on the Metropolitan National Sacco revealed massive misuse of Sh12 billion without members knowledge.
According to the latest SACCO Societies Regulatory Authority’s (SASRA’s) Supervision Report, the Sacco’s assets fell by 89.3 percent to Sh1.07 billion in 2023.
Despite existing legal laws, the CS said during the unveiling of the above-mentioned report that savings cooperatives continue to face numerous challenges.
“SACCOs are vital pillars of our economy, but their success depends on their ability to remain relevant and responsive to the needs of their members,” Kenya National Police DT SACCO CEO Solomon Atsiaya echoed Oparanya’s sentiments.
“The DT SACCO is committed to innovation and member satisfaction. We are constantly looking for ways to enhance our products and services and improve the overall member experience.”
SASRA data shows that there are 357 registered Saccos in the country.
