Cooperatives Cabinet Secretary (CS) Simon Chelugui has proposed that Saccos be allowed to clear their cheque books directly as opposed to the current practice of doing it through commercial banks.
The CS said Saccos were incurring a lot of expenses when clearing their cheques through commercial banks.
“I believe that Saccos will be able to clear their cheque books through the sector rather than the routine where Saccos have to go through commercial banks,” Chelugui said.
The CS said the government intends to come up with deposit guarantee funds through a credit guarantee scheme which is aimed at cushioning Sacco members against any loss of cash when a Sacco fails due to mismanagement.
He added that the government will also operate a shared services facility to enjoin Saccos in the national payment system, adding that they will also strengthen the commodity cooperatives to upscale value addition and further enhance food security.
By Jeff Mwangi
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