Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises Development, Wycliffe Oparanya, has assured that the national government is taking decisive steps to curb financial mismanagement in Saccos across Kenya.
His remarks follow the alleged misappropriation of KSh 82.8 million at the Kenya Union of Savings and Credit Cooperatives (KUSCCO), raising concerns over financial integrity within the sector.
Speaking at the opening of the three-day 10th Annual Sacco Leaders Convention at PrideInn Hotel in Mombasa, Oparanya said that the new measures aim to strengthen governance, enhance transparency, and foster sustainable growth in Saccos.
“The government is committed to safeguarding members’ savings by implementing stricter regulatory frameworks and improving oversight mechanisms,” he said.
The convention brings together Sacco leaders from across the country to discuss pressing challenges, including fraud prevention, leadership accountability, and financial stability within the cooperative movement.
Oparanya said the recent financial irregularities at KUSCCO calls for the urgent need for stringent measures to safeguard members’ contributions.
The CS said that a forensic audit report on financial mismanagement at KUSCCO has already been submitted to relevant authorities, and investigations, along with other legal actions, are currently underway. He assured that individuals found culpable will be held accountable through appropriate legal and administrative frameworks.
“The government will not tolerate any form of financial misconduct within the cooperative sector. Those responsible will face the full force of the law to protect members’ savings and uphold the integrity of Saccos,” he said.
Oparanya said that similar measures would be applied to all Sacco leaders found guilty of misappropriating or mismanaging members’ funds.
He noted that financial mismanagement has been a major challenge for many Saccos, leading to instability and loss of members’ trust.
“Many Saccos are struggling due to poor governance and mismanagement of funds,” he said.
Oparanya further urged the KUSCCO management to expedite the restructuring process to enable the Sacco to fulfill its mandate effectively.
He said that swift reforms are necessary to restore confidence among members and strengthen the institution’s financial stability.
KUSCCO National Chairman David Mategwa reassured members that the situation is under control and there is no cause for alarm.
He said that the management is doing everything possible to ensure KUSCCO remains strong and continues to serve its members effectively.
YOU MAY ALSO READ:
KUSCCO officials charged in connection with KSh83m theft freed on KSh14.5m bail
Mategwa also appealed to members who had taken legal action against the management to seek an out-of-court settlement.
“We urge those who have taken us to court to reconsider and engage in dialogue so we can find an amicable solution,” he stated.
Additionally, he called on members who had defaulted on their loans to prioritize repayment, warning that necessary actions would be taken against defaulters.
By Shaban Omar.
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
