Kenya Union of Savings and Credit Co-operative Societies (KUSCCO), the giant lobby for the Cooperatives Sector in Kenya, is pushing for several policy reforms to ensure growth and stability in the industry.
- •The lobby is pushing an Amendment to the Sacco Act No. 14 of 2018 to allow for the operationalization of the Deposit Guarantee Fund.
- •This move was made clear during the just concluded four-day 9th Annual SACCO Leaders Convention, organized by KUSCCO Limited, in Mombasa, which began on 19th February 2024 and ended Thursday 22nd February 2024.
- •The KUSCCO convention is taking place at a time when the Cooperatives sector is still grappling with several legal obstacles that have hindered its growth and development.
“We are urging for the UFAA Act 2011 to be reviewed to allow beneficiaries to nominate their beneficiaries to choose any other option of their choice. We are also in talks with the Government to resolve the problem of delays in remittance of Sacco dues by County Governments, Universities, and other Government Agencies, who owe Saccos KSh 3.5 billion in unremitted dues,” said Munene.
He disclosed that the KUSCCO Central Finance Facility (CFF) suffered panic withdrawals between October 2023 and January 2024, affecting its operations. “We are delayed in the disbursements of funds. We are hoping that our CFF will soon be licensed to allow us to resume normal operations as soon as possible, “said Munene. He added that Capacity building, education and training, advocacy, and provision of financial services to SACCOs is the mandate of KUSCCO which the Union intends to protect and will come to boardrooms to dialogue and partner with all stakeholders.
Board Members and Expansion
David Obonyo, the Commissioner of Co-operatives, who was one of the Chief Guests during the convention told Saccos to ensure they elect more women and youth to top leadership positions within their boards. This is to ensure a guaranteed future for Saccos, away from the current position where most Sacco directors are male and mostly over 60 years old. He urged the old guard at most Sacco boards to put in place a succession plan to ensure that the youth and women take over when they retire.
While many Sacco have rebranded and are now recruiting members outside their traditional catchment areas, Obonyo warns Saccos against attracting members who have no common interests with their core members.
“How can a Sacco for professional teachers open its common bond to attract mama mbogas and boda riders? As Saccos expand and recruit new members, they must be cautious and bring in new members who share the same interests as those of its core membership, “said Obonyo.
ALSO READ: SASRA Ignored CBK’s Recommendation to Regulate SACCOs Union
