- Commission calls for stronger controls to prevent corruption and protect resources
- Co-operatives department commits to reviewing and implementing recommendations
The Ethics and Anti-Corruption Commission (EACC) has flagged governance and oversight weaknesses in Kenya’s co-operative sector that could open the door to corruption.
The Commission presented its report on the examination of systems in the co-operative sector to the State Department for Co-operatives on Tuesday. It highlighted gaps in governance, internal controls and oversight that require corrective action.
Investigators examined technical and support functions within the State Department. They also reviewed key semi-autonomous agencies, including the Sacco Societies Regulatory Authority (SASRA), New Kenya Co-operative Creameries Limited (New KCC) and the New Kenya Planters Co-operative Union (New KPCU).
EACC Commissioner Alfred Mshimba said closing the identified gaps was critical to protecting resources that millions of Kenyans rely on for savings, credit and economic opportunities.
“Every resource safeguarded from corruption is a resource available for investment in housing, education, enterprise, agriculture, and the welfare of Kenyan families,” Mshimba said.
Because weak governance can expose public institutions to abuse, the Commission urged the State Department to carefully consider its findings and act on them.
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Among the key recommendations are strengthening governance and accountability mechanisms, improving oversight and internal controls, and addressing systemic weaknesses that could create opportunities for corruption.
The co-operative sector remains an essential pillar of Kenya’s economy. It underpins savings, access to credit, agricultural marketing and enterprise development for millions of members. As a result, weak controls in institutions managing these resources could have consequences well beyond individual organisations, affecting members, investors and the wider economy.
Principal Secretary (PS) for the State Department for Co-operatives Patrick Kilemi welcomed the report. He committed the department to reviewing its findings and implementing the recommendations.
Kilemi said the department would work with the EACC to strengthen governance, enhance accountability and tackle corruption across the sector. Both institutions agreed that continued collaboration was needed to ensure the reforms translate into stronger systems and better protection of co-operative resources.
According to the EACC, implementing the recommendations would strengthen institutional resilience against corruption while promoting transparency in the management of public and co-operative resources.
The reforms are therefore expected to improve oversight across the State Department and its agencies, safeguarding resources that support the livelihoods of co-operative members nationwide.
By Benedict Aoya
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