The government has suspended registration of new Savings and Credit Cooperatives (SACCOs for a period of three months to allow reform of the sector.
Speaking on Wednesday during the inauguration of the five-member Committee of Experts and new Kenya Union of Savings and Credit Co-operatives (KUSCCO) Board Cooperatives and Small and Medium Enterprises (MSMEs) Development Cabinet Secretary Wycliffe Oparanya said the suspension will allow a committee of experts to finalize its review of governance and policy alignment.
The CS noted that the suspension is a positive step towards restoring order and ensuring only credible cooperatives operate within the legal framework.
“This suspension will give the Committee of Experts adequate time to evaluate existing legislation and propose reforms that enhance the operational efficiency of saccos,” Oparanya said.
The five-member committee of experts chaired by Scotland’s Capital Credit Union Chief Executive Officer Marlene Shiels will be tasked with reviewing the SACCO Societies Act, 2008.
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Other members of the committee are Maurice Smith of the African American Credit Union Coalition (USA), Gina Carter, CEO of Husch Blackwell and Board Member of Redwood Credit Union (USA), Kenyan constitutional law expert Counsel Odhiambo Collins Harrison, and Gamaliel Hassan, CEO of Stima DT Sacco.
A technical team led by Morris Muriungi and John Ongatta will support the committee.
Oparanya said Committee will serve for a three-month period, effective immediately, and is expected to provide comprehensive and actionable recommendations to guide future legislative amendments.
They are expected to review industry operations and governance and align them with and align with international best practices.
They are also required to give advice on establishment of Central Liquidity Facility for all Saccos in the country, Sacco Deposit Guarantee Fund and development of a shared services legal and administrative framework.
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The new Transition Board of Directors of the KUSCCO will serve for a period of two years.
The board is chaired by David Mategwa of the Kenya National Police Sacco, with Mhasibu’s Jennifer Mburu serving as vice chair.
Other members include Brenda Obondo (Kenya Medical Association Sacco), Robert Njue (WINAS), Osmane Khatolwa (Stima DT Sacco), John Ziro (Imarika DT SACCO), Philip Rirei (Noble), Michael Muriithi (Unaitas), Priscilla Maranga (Office of the Commissioner), Mary Kweyu (Invest and Grow), and Charles Kioko (Geothermal Development Company).
By Obegi Malack
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