The Sacco stakeholders are urged to tap SMEs to spur growth

start ups

Stakeholders in the cooperative movement have been challenged to offer professional guidance on prudent financial management to start-up groups like SMEs to ensure such units mature to Saccos and Cooperatives.

Former Commissioner for Cooperatives Geoffrey Njang’ombe argued that when well equipped with skills and funds management skills, the groups have the potential of expanding their businesses to higher levels and boosting their profits and success.

In an interview with Sacco Review in Embu County, the former Commissioner argued that grassroots savers are an important chunk of investors in spurring regional and national economic development.

He added that many small saving groups do not grow well due to a lack of prudent management of members’ financial resources yet there are many rules and regulations formulated by the government regarding the same.

He urged all devolved units and the many cooperative societies to work with communities to encourage the evolution of small saving units to Saccos, cooperatives, and even banks.
“All resources at the County level should be managed under organized entities,” said Njang’ombe, noting that embezzlement of funds in saving groups in many parts of the country has led to the collapse of such organizations.
He pointed out that Embu County has a lot of potential in irrigation horticulture but it will all be a waste unless the county and national governments guide farmers towards serious investment in these sectors.
“Embu has a great potential in irrigation, horticulture, and beekeeping and these areas need to be exploited to boost the economy of the county,” said Njang’ombe.
He noted that since metal and iron sheets are used as the main materials in the building and construction industry, huge groups of young welding artisans should join Saccos in a bid to access loans and their raw materials at discounted rates.
“Young artisans in the Jua Kali industry should join hands and form Saccos and cooperatives as this can help them establish their own outlets and allow them to get materials directly from the manufacturers,” said Njang’ombe.

He urged Kenyans not to fear investing in Saccos because of losing their funds as there are many regulations in place to safeguard them against such vices.
He added that the judiciary has also come up with alternative dispute resolution packages to help solve court disputes.
“The government has formulated firm reforms and regulations to ensure the safety and profitable management of members’ funds in Saccos and cooperatives”, said Njang’ombe.

He revealed that he has been advising various Saccos and cooperatives in his locality and was available to work with stakeholders in the county government of Embu to guide young officers in the cooperative movement to become upright skilled and ethical professionals.
He advised that ethical practices in the management of Saccos and cooperatives have remained the main foundation for the success, profitability, and sustainability of the various units.
The expert urged elderly investors who have for years dominated the management of coffee and tea Saccos and co-operatives to encourage young people to venture into the farming of these important export profit-minting products because they have skills in management, value addition, and marketing.

By Robert Nyagah

Get more stories from our website: Sacco Review

Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates.

Sharing is caring!

Not Allowed