- Oparanya urges small traders to join Saccos for affordable loans.
- CS warns against risks of informal savings groups and lenders.
- Traders are also encouraged to embrace digital financial services.
Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises (MSMEs), Wycliffe Oparanya, has urged small business owners to join Savings and Credit Cooperative Organisations (Saccos) as an alternative source of affordable credit and a way of building a strong savings culture.
Oparanya said Saccos provide small-scale traders with an opportunity to save regularly, access loans and invest in their businesses, particularly at a time when many entrepreneurs struggle to secure affordable financing.
Speaking at Sibanga in Cherangany, Trans Nzoia County, the CS cautioned traders against relying heavily on informal lenders and unstructured savings groups, saying they expose entrepreneurs to financial risks and high borrowing costs.
“When we visit traders and encourage them to join Saccos, many tell us they are in ‘chamas’ yet they carry very high risks. The treasurer can disappear with your money, or on days when business is slow, you are still required to contribute. It just makes life difficult,” Oparanya said.
He encouraged entrepreneurs to make regular savings through Saccos, noting that even small contributions can accumulate over time and help members qualify for loans to expand their enterprises.
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“I want people to invest and join Saccos to be able to take loans for their businesses. Come in large numbers and save even as little as possible. By the end of the month, the accumulated amount will be of help,” he stated.
CS calls for digital adoption among traders
Oparanya also encouraged business owners to embrace digital financial services, saying technology has made it easier for Sacco members to monitor their savings, access services and conduct transactions remotely.
“Because of technology, you can use mobile banking regardless of where you are. Therefore, you must embrace technology as a business person,” he said.
Government cites Hustler Fund, market infrastructure gains
The CS said the government was implementing programmes aimed at expanding access to capital for small businesses and young entrepreneurs, including the Hustler Fund and NYOTA programme. He said the Hustler Fund had disbursed more than Ksh90 billion, with 28 million Kenyans registered, while about two million people access loans through the Fund daily.
Oparanya added that the government was also working to improve the operating environment for MSMEs by providing designated trading spaces across the country. According to the CS, more than 400 markets have been constructed to provide traders with secure premises, with some equipped with internet connectivity and storage facilities.
He further commended the Cooperative Bank and Cooperative Insurance Company (CIC) for providing financial and insurance services to members of the cooperative movement.
Oparanya said access to proper business premises, affordable credit and digital financial services would enable MSMEs to expand, create jobs and contribute more to economic growth.
He urged cooperative members to strengthen Saccos by working together and maintaining a strong savings culture, saying a vibrant cooperative movement would enable communities to pool resources, access affordable financing and invest in productive activities.
By Bernard Magada
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