David Obonyo – Sacco Review | The Leading Newspaper for Co-operative Movement in Kenya

Government warns Saccos against borrowing to pay dividends

Sacco ReviewApril 21, 202603 mins

The Commissioner for Cooperatives Development, David Obonyo, has sounded a stern warning to cooperatives and savings and credit societies (Saccos) that resort to borrowing money to declare dividends and rebates. Speaking during the launch of a four‑year strategic plan for Mhasibu Sacco, Obonyo said such practices amount to deception and will attract punishment under tightened…

Government launches crackdown on Sacco boards over misuse of members’ savings

Sacco ReviewApril 2, 202604 mins

The government has announced a sweeping crackdown on Sacco boards accused of misusing members’ deposits through lavish foreign trips, manipulation of financial statements, and unsustainable borrowing practices. Cooperatives Principal Secretary Patrick Kilemi, speaking during the Harambee Sacco Annual Delegates Meeting (ADM) in Nairobi, revealed that legislative and policy reforms are already before the ministry and…

Co-operatives cautioned against investing members’ funds in unregulated firms

Sacco ReviewJanuary 9, 202603 mins

Co-operative societies have been warned against placing members’ savings in unregulated institutions, with the government saying the practice violates the law and exposes depositors to serious financial risk. The Commissioner for Co-operative Development, David Obonyo, said some societies are ignoring statutory safeguards by investing funds in entities that fall outside the country’s regulatory framework. In…

Former KUSCCO directors challenges order to vacate office

Sacco ReviewMay 27, 2025May 28, 202504 mins

In the midst of a growing leadership struggle within the Kenya Union of Savings and Credit Cooperatives (KUSCCO), former directors who were recently ousted from office are protesting the decision and the official removal order. The former directors who are now directors and executives in various SACCOs were removed from the KUSCCO office after the…

Saccos cautioned against paying unrealistic bonuses and interest

Sacco ReviewJanuary 7, 202504 mins

The Ministry of Cooperatives and Micro, Small, and Medium Enterprises (MSME) Development has cautioned SACCOs against paying unrealistic bonuses, dividends, and interest, as such cash outflows could cause liquidity challenges if not properly managed. Through a circular sent to SACCOs by the State Department of Cooperatives, the Office of Commissioner David Obonyo stated that the…

Tap into SME market, stop over-reliance on employees, Co-op boss challenges Saccos

Sacco ReviewJanuary 18, 2023January 18, 202306 mins

By George Otieno Cooperative Commissioner David Obonyo has called for a paradigm shift on how Saccos conduct their businesses, warning that relying on the check off system is no longer tenable. Most Saccos, Obonyo stated, were employee based Saccos that depended on a check off at the end of the month to give loans that…