Cooperative and MSMEs Development Cabinet Secretary Wycliffe Oparanya on Monday officially opened the 11th Annual SACCO Leaders’ Convention in Mombasa, bringing together cooperative leaders from across the country.
The convention, organized by the Kenya Union of Savings and Credit Co-operatives (KUSCCO), brought together SACCO leaders from different SACCOs to discuss the future of the SACCO sector and how to protect the savings of the members.
In his speech, the cabinet secretary said the government is committed to cleaning up the SACCO sector and restoring the public’s trust in the sector.
“SACCOs are the financial backbone of millions of Kenyans. We must protect the savings of the members and ensure these institutions are run with integrity and transparency,” said the cabinet secretary.
SACCOs, according to the cabinet secretary, have many families relying on them to pay school fees, get business loans, and access emergency funds. As such, there is no room for poor management and poor leadership.
The CS revealed that the government is considering amending the SACCO Societies Act to improve regulation in the field. He also talked about the recent submission of the SACCO Sector Transformation Report to President William Ruto.
The report proposes several reforms to the SACCO sector. These reforms include enhancing the authority of the Sacco Societies Regulatory Authority (SASRA), improving deposits for members of SACCOs, and urging small SACCOs to merge to become better and more stable organizations.
As the AGM season starts, Oparanya has warned SACCO leaders against paying unsupported dividends. He said that the era of unsupported dividends is coming to an end.
“The era of unsupported dividends and weak governance is coming to an end,” he said firmly.
The meeting in Mombasa comes at an interesting time as the SACCO sector has come under scrutiny in recent times due to issues of governance. Oparanya said that they need to establish a strong cooperative movement that will always uplift the lives of ordinary Kenyans.
