By Amoto Dennis.
Garissa County Co-operative Commissioner, Daniel Mutiso has urged co-operative societies to embrace good governance to succeed in their operations.
Speaking to Sacco Review in his office in Garissa town recently, Mutiso said poor management of saccos has led to dismal performance of most of them.
“Chief Executive Officers (CEOs) and Board members ought to identify weak areas in management that need to be strengthened. Saccos should to re-examine governance practices and rectify the weak areas,” he advised.
“Most Boards haven’t adopted appropriate governance frameworks for their Saccos, thus exposing them to undue competition from other micro finances,” he noted.
“Saccos mismanagement in the past few years has resulted in the challenges in financial management. CEOs should take expert advice to solve such problems,” he added.
“Often Saccos borrow funds but fail to repay them because CEOs didn’t seek professional advice. Societies with poor governance track record ought to go through internship to demonstrate that they are ready take care of members’ finances better through prudent management,” Mutiso observed.
“You should get the right people in the committees and diversify the products to enable saccos to grow,” he counselled and urged the Garissa County Government to help in reviving dormant Saccos.
“There are about 30 urban registered Saccos in the county and about 6 dormant ones, all with a total membership of about 400.