Cabinet Secretary for Cooperatives and MSMEs Development, Wycliffe Oparanya, has praised Savings and Credit Cooperative Organizations (SACCOs) for their role in mobilizing over Kes.1.2 trillion in savings, disbursing Ksh.1 billion in loans, and accumulating an asset base of Kes.1.7 billion. Speaking after a meeting with SACCO leaders in Nairobi, Oparanya highlighted the transformative role SACCOs play in financial inclusion, particularly in rural areas.
“SACCOs have the potential to be powerful drivers of economic growth and social development in Kenya,” Oparanya noted, emphasizing the importance of governance and support to fully realize their impact.
The CS, while commending the Kenya National Police DT SACCO for its exemplary performance, acknowledged that other SACCOs struggle with governance issues. To address this, the government plans to introduce a new cooperatives bill aimed at strengthening SACCO governance, alongside amendments to existing legislation to create a more robust regulatory framework.
Oparanya stressed that poor corporate governance has hindered the growth of many SACCOs, and urgent reforms are needed to ensure transparency and member satisfaction. He also hinted at plans to empower SACCOs to self-regulate, with the government providing oversight to ensure depositor safety.
Solomon Atsiaya, CEO of the Kenya National Police DT SACCO, echoed Oparanya’s sentiments, affirming their commitment to innovation and member satisfaction. “We are constantly looking for ways to enhance our products and services,” Atsiaya said.
Oparanya expressed a vision for a more autonomous SACCO sector with stronger self-regulation. Additionally, the Ministry plans to revitalize the Kenya Union of Savings and Credit Cooperatives (KUCSCO) to explore funding options for sustainable growth.
