Opinion and Commentary

How IFRS 9 has affected Saccos

By Josphat Irura IFRS 9 – Financial Instruments became effective on January 1, 2018 and immediately replaced IAS 39, Financial Instruments – Recognition and Measurement. It was meant to respond to criticisms that IAS 39 was too complex, inconsistent with the way entities managed their businesses and risks and that it deferred the recognition of credit losses on loans and ...

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Fake news affects growth of Saccos

As the era of fake news continues to unfold, Saccos have found themselves in precarious positions. In various social media platforms, some members have perfected the art of posting false alarms warning their counterparts of possible collapse of certain societies and urge them to withdraw their savings. This trend has been very costly within the movement. Once the fears are ...

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Saccos should trend cautiously when rebranding

I have keenly been following events in the Co-operative Movement for the last one decade and there is one question that has been bothering me; has rebranding of Saccos really been a gain or a double-edged sword for the industry? Most problems affecting many Saccos currently have pointed to the change of names and the expansion of membership beyond their ...

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Anti-Fraud police unit, a pIus for Saccos

A recent presidential directive that an anti-fraud police unit be set up within Sacco Societies Regulatory Authority (SASRA) can best be described as a stich in time for a sector that is already bleeding profusely due to the action of a network of financial fraudsters, hackers and unscrupulous insiders. While a growing number of DT Saccos, with huge balance sheets, ...

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Kajiado County must embrace cooperatives to grow wealth

By Fred Sitati Serious concern and apparent sense of hopelessness has been expressed by the Kajiado County leaders over the perennial drought that has continued to threaten the livelihoods of the resident s who are largely dependent on livestock keeping. The matter is further compounded by the infiltration of middlemen who buy farm produce cheaply from the farmers due to ...

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Why DT-Saccos offer great promise in banking sector

By Renson Ireri With the continuous growth of Deposit-Taking Saccos in Kenya, and the positive reception given to the Sacco societies concept by Kenyans of different status, regions, age and professions, the future of the co-operative movement is very bright and needs to be well nurtured. Whereas the banking industry continues to face a myriad of challenges that have led ...

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Using the co-operative model to address youth unemployment

By Joseph Kamiri Kenya has undergone various changes since independence among them a growing population estimated at more than 45 million citizens today from a population of about eight million in the early 1960s. Based on the latest UN estimates, the country’s youth population is made up of around 10 million people, which is more than 20 per cent of ...

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Saccos need to adopt blockchain technology

Blockchain technology is the new kid in the block that could forever alter the digital landscape of the Sacco sector in Kenya. Blockchain is a distributed ledger that can keep track of the transactions happening in a number of machines and does not allow the retroactive alterations of records without the alteration of all subsequent blocks and the collusion of ...

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How Saccos can tame the rising cases of loan defaults

The recent revelation by the Senior Deputy Commissioner, State department for Co-operatives Geoffrey Njang’ombe that loan defaulters owe Saccos over Sh8 billion does not augur well for the sector. Ridiculously, these loans have not been serviced over several years yet the defaulters are still earning their monthly incomes apart from owning assets worth billions of shillings. In recent times loan ...

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