By Kephas Ayiecha.
The Government’s plan to amalgamate financial institutions through the draft Finance Authority Bill of 2016 should be rejected as members will have to tighten their belts since the future will be uncertain.
Kenya Union of Sacco Societies (KUSCCO) Rift Valley chairman, Robert Owino told Sacco Reveiw that if passed, the Bill will subject Saccos to uncertainty, forcing some of them to close orhave to join others in order to survive.
“Saccos should stand out even if the regulator puts them under one authority. Now things have changed for Saccos unlike in the past when they were under the ministry. In 2010 they were placed under the control of SASRA and now the government wants to put them under one regulator,” he said.
He explained that putting them under one regulator would mean that the Saccos will enjoy the status of banks and recognized as such, and hence be subjected to stricter measures than before.