By Paul Ngugi Ruo
Cooperation means living, thinking and working together. It is therefore important to uphold the socialist theme for effective running of cooperatives. Co-operation is based on the principal of self-help through mutual help, service above self and abolition of profits. Therefore, cooperative management is unique in its own way despite the fact that return on investment is necessary.
The uniqueness of cooperatives should inform a different approach in shaping the cooperative business model.
The goals and objectives of any cooperative should always guide cooperatives in rolling out any product for its members.
However, most cooperatives today have evolved from benefit-oriented inclination to profit maximization dispensation, which is not the core reason why it was formed. In fact, every cooperative wants to declare more dividends than the other, more assets, more products, and so on.
What Sacco Boards of Management ought to do is look at members’ economic gains from their products rather than concentrate on dividends, which is usually surplus gained from the members who are supposed to economically empower them.
Members are subjected to a lot of hidden charges for the Sacco to earn more, conflicting the coop model that is founded on concern quality service, cheap loans, innovative products that serve to empower members, economic gains and a better living standard.
In determining the best management practices, every coop should develop their own strategy and policy revolving around individual coop goals and objectives. Therefore, management models must be unique that will ensure realization of its vision and mission in its own unique way.
Consequently, there is need to develop policies and adopt models that are realistic and achievable. At every level of growth, the commissioner of cooperatives and SASRA should always ensure they are informed of every cooperative practices and products. Here are some suggestions that can strengthen the cooperative spirit and restore it to its original purpose.
- SASRA: as the regulatory authority, it should reflect on their past actions to inform future activities that determine regulatory gaps within its operations.
- Boards: SASRA should look at the composition of Boards in terms of qualifications, management standards, enforcement of Sacco policies and strategies, and regulatory frameworks to ensure adoption of good and prudent operating standards in future.
- Auditor: the Commission should ensure high levels of professionalism are adhered to in a way that reflects the true financial position of the Sacco.
- Quality and standards: Sacco operating policies should be audited to ensure they promote good governance with members’ interests at heart and the Sacco vision and mission as the driving force behind every operation.
- Sacco CEO: the daily operations of the Sacco reflect the competence of its chief executive, and because they either make or break a Sacco, the complementary role of the Board should be maximized to ensure prudence and sanity in management of resources.
If all these stakeholders play their key roles, innovativeness and creativity are developed to bolster operating policies and strategy, which aligns themselves with each cooperative unique mission and vision, their specific by-laws, as well as all laws written to guide the cooperative movement in Kenya and well established international management standards’ and ethics.
The writer is an employee of the National Police Service Commission and a Masters of Cooperative Management student at the Cooperative University of Kenya.
