NAIROBI, Kenya – The Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development, Wycliffe Oparanya, has urged comprehensive reforms in Kenya’s cooperative sector, with a focus on improving member satisfaction and strengthening corporate governance.
Addressing the press during a briefing with the Kenya National Police DT SACCO, Oparanya highlighted the sector’s significant achievements, including mobilizing over Sh1.2 trillion in savings, disbursing Sh1 billion in loans, and building an asset base of Sh1.7 billion.
Despite these milestones, he noted that many SACCOs are still hindered by weak governance structures, which threaten their sustainability.
To address these governance challenges, Oparanya announced plans for a new cooperatives bill and amendments to existing legislation.
The reforms aim to enhance the regulatory framework governing SACCOs while ensuring that they remain focused on their members’ needs.
“SACCOs have the potential to drive economic growth and social development in Kenya,” Oparanya said. “By strengthening their governance and equipping them with the right tools, we can unlock their full potential.”
The Cabinet Secretary emphasized the importance of ensuring SACCOs are responsive to the economic needs of their members, describing them as vital pillars of Kenya’s economy.
He also expressed the government’s intention to enable SACCOs to self-regulate, with the state’s oversight limited to safeguarding depositors’ funds.
Solomon Atsiaya, CEO of the Kenya National Police DT SACCO, supported Oparanya’s remarks, stressing that SACCOs must innovate and improve services to meet the evolving expectations of their members.
“SACCOs must remain relevant and responsive to their members’ needs if they are to continue thriving as critical pillars of our economy,” Atsiaya remarked.
Oparanya also reiterated the government’s commitment to revitalizing the Kenya Union of Savings and Credit Cooperatives (KUSCCO) and seeking additional funding to support its operations.
He underscored the urgency of tackling poor management practices, which he said have plagued many SACCOs and threaten their existence.
“I’ve been in office for just three weeks, but it’s already clear that mismanagement is the biggest problem facing SACCOs,” Oparanya lamented. “SACCO boards must ensure that members’ contributions are safe.”
Addressing the press during a briefing with the Kenya National Police DT SACCO, Oparanya highlighted the sector’s significant achievements, including mobilizing over Sh1.2 trillion in savings, disbursing Sh1 billion in loans, and building an asset base of Sh1.7 billion.
Despite these milestones, he noted that many SACCOs are still hindered by weak governance structures, which threaten their sustainability.
To address these governance challenges, Oparanya announced plans for a new cooperatives bill and amendments to existing legislation.
The reforms aim to enhance the regulatory framework governing SACCOs while ensuring that they remain focused on their members’ needs.
“SACCOs have the potential to drive economic growth and social development in Kenya,” Oparanya said. “By strengthening their governance and equipping them with the right tools, we can unlock their full potential.”
The Cabinet Secretary emphasized the importance of ensuring SACCOs are responsive to the economic needs of their members, describing them as vital pillars of Kenya’s economy.
He also expressed the government’s intention to enable SACCOs to self-regulate, with the state’s oversight limited to safeguarding depositors’ funds.
Solomon Atsiaya, CEO of the Kenya National Police DT SACCO, supported Oparanya’s remarks, stressing that SACCOs must innovate and improve services to meet the evolving expectations of their members.
“SACCOs must remain relevant and responsive to their members’ needs if they are to continue thriving as critical pillars of our economy,” Atsiaya remarked.
Oparanya also reiterated the government’s commitment to revitalizing the Kenya Union of Savings and Credit Cooperatives (KUSCCO) and seeking additional funding to support its operations.
He underscored the urgency of tackling poor management practices, which he said have plagued many SACCOs and threaten their existence.
“I’ve been in office for just three weeks, but it’s already clear that mismanagement is the biggest problem facing SACCOs,” Oparanya lamented. “SACCO boards must ensure that members’ contributions are safe.”
