By Sacco Review reporter
A policy promise by President William Ruto to create a Cooperative and SME Ministry has been applauded as a step in the right direction.
In his inauguration speech on Tuesday at Kasarani, President Ruto announced the creation of the ministry in a clear move aimed at enhancing Kenyans’ living standards.
“We shall implement the Hustler Fund, dedicated to the capitalization of micro, small and medium-sized enterprises through chamas, Saccos and Cooperatives to make credit available on affordable terms that do not require collateral,” he said.
He said creation of the ministry will see every small business secure property rights, access to finance and a supportive regulatory framework.
This will mirror the late former President Mwai Kibaki’s regime where the late Joseph Nyaga was appointed Cooperatives Development Minister in the Grand Coalition Government in 2008.
The late minister was so instrumental in the growth of the Cooperative movement in the country.
Nyati Sacco CEO Julius Bett applauded the decision to create the ministry, saying it will enhance the decision-making process unlike in the previous arrangement.
“This is a credible empowerment tool for the trickle-down effect to reach the intended person,” he said.
“By disbursing the resources, it will ultimately empower the small trader and that is one way of enhancing financial inclusion in the country,” Dr Bett told Sacco Review.
This, he noted, is a tried way of moving people away from poverty.
With the creation of the ministry, emerging issues can be addressed quickly unlike in the previous regime where the cabinet minister was in charge of agriculture, trade and industrialization.
He admitted that the SME sector has money and numerous chances, but issues of collateral and guarantors keep the players off.
Tai Sacco CEO John Mwangi supported the move, saying it will handle issues touching on Cooperatives better.
“The whole docket will ensure that any Cooperative project is handled better,” he said, adding that any challenges that might arise will be attended to faster unlike in the previous regime.
In the past, Mwangi noted, it was a tall order for issues affecting the Cooperative movement to be addressed timely and exhaustively.
“There is a possible creation of departments to tackle Cooperative issues such as marketing and possibly Saccos,” he said.
Mwangi remained optimistic that with this in place, the Cooperative sector will grow to greater heights and create a positive impact on Kenyans.
“Funds allocated to the relevant department will reach the intended target in a faster manner and this will enable the growth of the sector and uplift many from poverty,” he said.
Kenya’s Cooperative movement has remained critical in the social and economic development of the country, mobilising billions and extending affordable credit for income generating activities.
According to statistics, the Cooperative sector commands an asset base of more than Ksh1.3 trillion with more than 14 million members.
Kenya is ranked 7th globally and 1st in Africa in the Cooperative movement.
