NYERI, Kenya, Jan 14 — The government is set to establish a central clearing facility for saccos in a bid to ease access to financial services and deepen inclusion.
Speaking during the 47 annual general meeting for teachers in Nyeri county on Saturday, Cabinet Secretary for Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Simon Chelagui said the facility will enable saccos process transactions faster.
“We realize that over 20 million Kenyans rely on them (saccos) and that is why it is important for the country to establish such a facility that will enable them clear bank cheques faster and also have their own cheques,” said Chelagui.
He said the facility projected to cost saccos Sh1 billion will be in place within a year but added it could be done sooner.
“At the moment fifty saccos out of 890 have committed to the establishment of the centre but we want to bring more on board,” said Chelagui.
Huge deposits
Saccos which command huge deposits amounting to billions of shillings rely on services of banks through the central depositing unit to clear their cheques, a situation that limits them from processing customers with huge transactions.
With the establishment of the centre, Chelagui said that now saccos will, apart from clearing cheques faster, be able to issue them in their favour.
“This is system will not put saccos in competition with banks but we just want to ensure they offer services to Kenyans. Of course some transactions that involve huge sums of money will be referred to banks,” said Chelagui.
The minister further said that the government will also embark on digitization of saccos to ensure members have identity numbers that are more recognizable across the spectrum.
“We will embark on digitization of members of the existing saccos this will ensure that if you are a member of any we can easily identify you we must grow this sector,” said Chelagui.
Nyeri Governor Mutahi Kahiga praised the move by government to digitize saccos and establish a central unit saying that this will aid the growth of the sector.
