The Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSME) Development has issued a stern warning to SACCOs (Savings and Credit Cooperative Societies) that have failed to file their annual returns, confirming that those who remain non-compliant risk having their licenses revoked.
Cabinet Secretary for the Ministry of Cooperatives and MSME Development, Wycliffe Oparanya, revealed that over 10,000 SACCOs have not filed their annual returns for several years, violating the provisions of the law.
According to the CS, out of the 13,000 SACCOs registered in the country, only 2,700 regularly submit returns to the Office of the Commissioner for Cooperatives, as required by law.
Speaking Leadership, Ethics and Strategic Governance Forum in Naivasha, CS Oparanya stated that within the next 21 days, the ministry would issue a gazette notice compelling all non-compliant SACCOs to submit their annual returns, which must include audited accounts detailing their operations.
He warned that failure to comply within the stipulated time frame would result in the revocation of SACCO licenses.
“Failure to file annual returns undermines the principles of transparency and accountability and endangers members’ deposits,” the CS emphasized. He further noted that it is only through the submission of these returns that the government can effectively monitor the operations and locations of SACCOs, ensuring proper oversight.
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The Commissioner for Cooperative Development, David Obonyo, echoed the CS’s sentiments, highlighting that governance plays a pivotal role in the growth and sustainability of cooperatives in the country.
Obonyo stressed that weak or ineffective governance negatively impacts the cooperative sector and that leadership forums, offer leaders the opportunity to strengthen governance in their institutions to better serve their members.
Under the Cooperative Societies Act (Cap 490), all registered SACCOs are legally required to file annual returns with the Commissioner for Cooperative Development. These returns typically include financial statements, a report of activities, and other vital information. This legal requirement ensures that SACCOs operate transparently and remain compliant with government regulations.
By Obegi Malack
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