Saccos encouraged to invest in ICT to bolster competitiveness

BySacco Review

May 7, 2022
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By Obegi Malack         

Commissioner for cooperatives David Obonyo has challenged Saccos to invest in robust Information and Communication Technology (ICT) system in all their operations to improve competitiveness.

The commissioner, who was speaking during Sheria Sacco’s Annual Delegates Meeting, said the Covid-19 pandemic proved that ICT system is a must for Saccos. 

He said there are over 360 Saccos licensed as either non-deposit taking or deposit taking saccos which are operating across the country.

“Majority of these Saccos have no boundaries and have opened their Common Bond to accept members from every sector,” he said.

Obonyo challenged Sacco Boards not to lose focus of their core business, which is to mobilize savings and provide loans at affordable rates.

On the issue of remittances, the commissioner said he is working with the Office of the Commissioner to ensure they deposit members’ payments. They have signed Memorandums of Understanding (MOUs) in some cases.

“We have entered into MOUs with some employers to clear amounts in tranches to move progressively towards settling the amounts,” he said.

Covid-19 pandemic had affected some employers, making it difficult to remit employees’ deductions to Saccos.

He said the State department in charge of cooperatives will continue to create an enabling environment for the growth and sustainability of the sector.

“It will endeavour to undertake appropriate interventions for the growth and development of cooperatives such as legal, policy and institutional frameworks that promote a saving culture, prudent financial management and good governance to enable cooperatives realize their full potential,” he said.

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