Nairobi, Kenya, July 2-President Uhuru Kenyatta says the implementation of legislative measures targeting the operations of the Savings and Credit Co-operatives (SACCOs) has been key to getting rid of the pyramid schemes menace in the country.
Speaking when he presided over the 100th International Co-operative Day christened “Ushirika Day” in Kenya, President Kenyatta said that the regulations of the sector by the SACCO Societies Regulatory Authority (SASRA)have encouraged Kenyans to save more as they are assured of the security of their investments.
He pointed out that for the past seven years the SACCO industry has registered remarkable growth in terms of membership saying the numbers have risen from 3 million in 2014 to 5.5 million in 2021 which he said signifies the growing confidence in Saccos as savings and investment vehicles.
“Because of placing everyone under SASRA, all those who used to engage in pyramid schemes have left. Now we have confidence that the Saccos are properly regulated, that people’s savings are properly looked after, and this is the way to prevent the crooks from forming SACCOs to steal money from members,” said President Kenyatta.
President Kenyatta noted that in terms of loans and deposits, SACCOs have registered growth with loan portfolios growing from Sh228 billion in 2014 to Sh522 billion in 2021, while deposits rose Sh206 billion to Sh474 billion over the same period.
In regard to affordable housing President Kenyatta said that SACCOs remain important financiers in the land and housing sub-sector saying that a third of loans to members goes towards the purchase of land and housing development.
“Under the affordable housing pillar of the Big Four Agenda, we established the Kenya Mortgage Refinancing Corporation (KMRC) as a public-private partnership to scale up housing finance through long-term funds. I am pleased to note that currently, 12 SACCOs have invested equity in KMRC and are today beneficiaries of affordable funds to grow their mortgage portfolios,” he said.
The Head of State added that the policy and legal framework for the SACCOs central liquidity facility and shared technology services received cabinet approval in May this year pointing out that the requisite legal amendments is awaiting to be processed by Parliament.
He added that his cabinet has also approved the legal amendments towards the setting up of the deposit insurance for SACCOs- a deposit guarantee fund, he says will play a critical role in further enhancing financial stability of Sacco’s by compensating depositors in the event of a Sacco collapsing.
President Kenyatta lauded the success of the cooperative movement saying it has helped transform the lives of Kenyans.
“Going forward we should strive to strengthen the cooperative movement to empower the small-scale farmer, trader, micro-enterprise manufacturer and so on. Cooperative movement is the way forward for sustainably empowering micro and small business enterprises in the country,” President Kenyatta said.
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