The government is planning to establish a new regulatory authority to safeguard billions of shillings in non-Sacco cooperatives, a move aimed at addressing critical oversight gaps that have left thousands of Kenyans, especially farmers, vulnerable to financial loss.
This was revealed by the Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development Cabinet Secretary Wycliffe Oparanya, who said that the new regulator will operate within his Ministry to enforce accountability and transparency across all cooperative models.
The CS also revealed that while the Sacco Societies Regulatory Authority (SASRA) has successfully stabilized deposit-taking Saccos, other cooperatives remain under-regulated and prone to mismanagement.
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“Because we have also learned that members in the coffee, cotton, and other agricultural sectors lose significant amounts of money. The government has SASRA as a regulatory body to oversee the Saccos. Unfortunately, the other cooperatives, apart from the Saccos, are overseen by the Commissioner of Cooperatives,” said Oparanya.
Non-Sacco cooperatives in Kenya are member-owned outfits that focus on specific economic activities such as agriculture and housing and do not engage in savings and credit. They fall under the Commissioner for Cooperative Development, unlike Saccos, which are regulated by SASRA.
Speaking during the 11th Sacco Leaders Convention in Shanzu, the CS decried mismanagement of Saccos, which has left many financial institutions struggling.
“People have saved all their lives; they retire, but cannot access their money due to mismanagement.”
By Juma Ndigo
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