Leaders in the Savings and Credit Cooperative (Sacco) sector are seeking to establish a unified cooperative movement aimed at enhancing governance, strengthening advocacy, and influencing policy discussions on agriculture, housing, and consumer affairs to improve the country’s economic well-being.
The proposed movement is expected to address persistent management and governance challenges that have contributed to the loss of billions of shillings belonging to cooperative members and investors over the years.
Speaking during a Cooperative Alliance of Kenya (CAK) meeting, CAK Chairperson Macloud Malonza said the initiative seeks to foster stronger leadership structures and promote accountability within cooperative societies.
“Our main mission is to strengthen advocacy and governance while improving relationships among board members to enhance accountability and service delivery across the cooperative sector,” said Malonza.
He noted that cooperatives play a critical role in Kenya’s economy, contributing approximately 45 per cent of the country’s Gross Domestic Product (GDP). The sector also mobilizes savings and investments from more than 14 million members, either directly or indirectly, making it one of the country’s most significant economic pillars.
According to Malonza, the proposed cooperative movement will provide a common platform for stakeholders to evaluate market trends, discuss emerging economic challenges, and formulate strategies that support sustainable growth within the sector.
ALSO READ:
NCPB releases 100,000 bags of subsidised fertiliser after farmer protests in North Rift
Despite the impressive growth recorded by cooperatives in recent years, he acknowledged that governance shortcomings, financial mismanagement, and weak oversight mechanisms continue to undermine public confidence.
“Despite the growth in the cooperative sector, we still experience challenges that need to be addressed in order to earn and sustain investors’ trust,” he said.
Sector leaders believe that a stronger and more coordinated cooperative movement will help safeguard members’ investments, improve transparency, and position cooperatives as key drivers of Kenya’s socio-economic development.
The leaders further called on stakeholders, regulators, and cooperative members to support reforms aimed at strengthening governance structures and protecting the interests of millions of Kenyans who rely on cooperatives for savings, credit, housing, and agricultural development.
By Ochola Victor
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
