As the President plans to reconstitute his cabinet, members of a Sacco have urged him to appoint a Cabinet Secretary with expertise in managing cooperatives.
Members of Anchor Premier Sacco have expressed that appointing someone with experience in managing cooperative societies to lead the Ministry of Cooperatives and Micro, Small, and Medium Enterprises Development would strengthen the sector.
The Sacco chairperson Joseph Mbai stated that the sector could significantly influence the economy if managed effectively.
He mentioned the Hustler Fund, introduced by the Kenya Kwanza government in 2022, which offers affordable loans to Kenyans.
Last year, the government introduced the second phase of the fund, enabling Saccos to obtain loans ranging from Ksh20, 000 to Ksh1 million. These loans have an annual interest rate of seven percent on a reducing balance and are to be repaid within six months.
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Mbai suggested that the fund be increased to provide more financial support to Saccos, enabling them to better assist their members.
“Expanding the fund would enable more Saccos to access more funds and help make them more liquid to provide funds to their members and consequently support the economy. This is why we need somebody with Sacco experience to head the ministry,” he said.
He mentioned that Saccos have established structures and are regulated by the Saccos Societies Regulatory Authority, which oversees their debt repayment.
Given that many Kenyans are members of different Saccos, Mbai stated that increasing the fund would significantly impact the economy and broaden the government’s revenue base.
Daniel Kagui, a Sacco member, urged the government to consider postponing some of its plans in order to help alleviate the rising cost of living for Kenyans.
“It’s important the President takes care of our taxes. We understand that the debts have to be paid but what if we pay the debts and die in the process because we cannot live?” he posed.
Kagui stated that the country possesses a wealth of resources that, if managed effectively, could sustain it and reduce the need for external borrowing.
“Imposing taxes is not the solution. The solution is managing what we have well and living within our means. If we borrow more money, we will end up in a deeper pit,” he said.
Member Carol Kamau emphasized the importance of the government creating a supportive environment that allows Kenyans to work and earn a living.
She stated that this initiative will increase government revenue and improve living standards for Kenyans.
“If someone is able to take a loan from a Sacco and do business, they will feed their families and at the same time help the Sacco to keep running. They will be providing jobs in their business but also sustaining other jobs which also serve the government,” she said.
On July 11, President William Ruto dissolved his Cabinet after weeks of youth protests, which also resulted in the withdrawal of the Finance Bill, 2024.
By Frank Mugwe
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