The government has suspended all Savings and Credit Cooperative Societies (Saccos) from investing in non-core businesses, citing financial instability and weak regulation in the sector.
Appearing before the senate Cooperatives Cabinet Secretary Wycliffe Oparanya says audits show that investment in non-core businesses are among decisions that have plunged the sector into financial turmoil.
Cooperatives Cabinet Secretary Wycliffe Oparanya says the regulatory body is struggling to oversight saccos due to financial challenges saying most levies collected by the Sasra is diverted to the National Treasury.
In a raft of measures the government has also stopped saccos from investing in non-core businesses until proper regulatory frameworks are put in place.
Oparanya urging the Senate to pass the Sacco bill, that will criminalize late deduction remittance by employers.
The CS has ruled out proposals to bail out struggling saccos advising saccos to liquidate their assets to compensate their members and stay afloat.
