Cooperative Societies of Kenya Chief Executive Officer Daniel Marube has called for stronger safeguards to protect members’ savings, including the establishment of a deposit guarantee fund and enhanced regulatory powers for the Sacco Societies Regulatory Authority (SASRA).
Speaking during the inaugural Regulatory Policy and Legal Roundtables for Specified Non‑Withdrawable Deposit‑Taking Saccos in Nakuru County, Marube said a 17‑member committee drawn from different regions had recently reviewed proposals from experts and a draft bill sponsored by National Assembly Majority Leader Kimani Ichung’wah.
Marube stressed that Sacco members should not walk away empty‑handed when institutions face financial distress. He argued that just as banks operate under the Kenya Deposit Guarantee Fund, it is time for Saccos to establish their own deposit insurance mechanism, supervised by SASRA. “The fact that we shall be having a deposit guarantee fund does not give cooperative managements the freedom to misuse members’ savings, so that you can go and claim the money from the insurance,” he cautioned.
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He explained that the fund would serve as a safety net while also enabling regulators to detect early signs of mismanagement. “We want to prevent and detect early that the leadership of Sacco X is leading in the wrong direction, so that we capture it and prevent the Sacco from collapsing,” he said.
Marube urged Sacco leaders to exercise prudence in financial management, noting that institutions should be stable enough to operate for decades without collapse. He added that SASRA should be granted more authority to intervene before problems escalate.
The CEO welcomed the proposal to introduce central liquidity and shared services for Saccos, saying the reforms would modernise operations and reduce reliance on traditional systems. He explained that shared services would allow Saccos to borrow from one another, clear transactions internally, and embrace technology to improve efficiency.
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“There shall be at least three to four shared services available, regulated by SASRA, to ensure that operational standards are maintained and any faults in bookkeeping are detected early,” Marube said.
He emphasised that the reforms are designed to strengthen the cooperative movement, build confidence among members, and secure the sector’s long‑term prosperity. “All these reforms are for the good of the cooperative movement and for the prosperity and confidence of our members,” he concluded.
By Masaki Enock
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