Govt urges Saccos to avoid external borrowing

By Musa Radoli

The Senior Deputy Co-operative Commissioner, Geoffrey Jang’ombe has told the co-operative societies in the country to avoid borrowing externally from the commercial financial institutions even if they were hard pressed by their liquidity status due to delays to get remittances from the County or National governments ministries.
“Savings and credit societies are the fastest growing sub-sector in the movement, have mobilized savings of more than Sh230 billion but the entire co-operative movement in Nairobi County alone has accumulated assets of more than Sh330billion,” said the commissioner.
He said the vibrant and dynamic co-operative movement in Kenya is the strongest in Africa, a key player in the economy, controlling about 43 per cent of Kenya’s gross domestic product (GDP). Co-operative societies in Kenya employs more than 300, 000 people, besides providing opportunities for self-employment to many.
Jang’ombe said that the top five Saccos in the country were led by Mwalimu with accumulated assets worth more than Sh40 billion, followed by Stima Sacco at Sh28 billion, Police Sacco at Sh22 billion, Afya Sacco Sh16 billion and Harambe Sacco at Sh12 billion as at the last financial year.
Njang’ombe, who was representing the Commissioner of Co-operatives, Mrs. Mary Mungai was speaking during Afya Sacco’s Annual Delegates Conference at the Kenyatta International Convention Centre (KICC) in Nairobi.

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