In the heart of Kenya’s cooperative landscape, the Kenya Union of Savings and Credit Cooperatives (KUSCCO) stands tall as a beacon of growth and sustainability. With a commitment to leadership education, technological advancement, cooperation, diversification, and inclusivity, KUSCCO has been instrumental in rejuvenating the cooperative movement since its inception.
Recently, during the 9th KUSCCO Sacco Leaders Conference held at the Sarova Whitesands Hotel in Mombasa, the spotlight shone brightly on the key role cooperatives play in developing financial inclusion across Kenya.
The Cabinet Secretary for Cooperative Development and MSMEs, Hon. Simon Chelugui, underscored the historical significance of SACCOs as the bedrock of financial inclusivity in Kenya. Highlighting their indispensable services and role in promoting financial literacy,
Chelugui emphasized the multifaceted contributions of cooperatives in facilitating access to affordable housing and essential services. He affirmed the government’s recognition of cooperatives as key enablers of the Bottom-Up Economic Transformative (BETA) Agenda, championed by the Kenya Kwanza government, aimed at driving economic growth from the grassroots level.
Themed “Diversity, Equity, and Social Inclusion: The New Landscape for Saccos,” this year’s KUSCCO leaders conference resonated with calls for commitment, cooperation, adherence to sacco values, democracy, technology, innovation, and the protection of members’ funds.
The CS issued a cautious warning, urging the new KUSCCO leadership to implement stringent measures to safeguard funds within the organization, following recent challenges that led to key leadership changes and almost a mass exodus of sacco members from the umbrella body.
To enhance the efficiency and resilience of the cooperative sector, he outlined legal amendments aimed at bolstering short-term liquidity, access to central payment systems, and establishing a Deposit Guarantee Fund.
Furthermore, proposed amendments to the Cooperative Act aim to introduce prudential regulations tailored for startups and small SACCOs, stratifying them into tiers based on size to enforce specific standards.
Cooperative Commissioner David Obonyo stressed the importance of trust, integrity, and member-focused leadership among SACCO leaders. Emphasizing the economic growth of members through access to affordable credit. He urged leaders to prioritize giving members affordable credit at low interests over dividends and high-interest rates on deposits end of each year.
”The trust and confidence bestowed on leaders by the members should be used well,” Obonyo said. He added that sacco leaders should focus on advancing the economic growth of members by putting more emphasis on the access to affordable credits.
Despite strides made, regulatory hiccups persist, particularly regarding the obscurity of cooperative law in devolved governments. An operational bill is under review to address this challenge, with the Cooperative Alliance of Kenya (CAK) spearheading efforts to pioneer a SACCO regulation bill.
This bill aims to clarify the roles of both levels of government, ensuring seamless cooperation between the cooperative movement and county and national governments.
“CAK advocates for legal management of cooperatives so that they can function and their business can run well. Not in our season that any sacco will fall. We must protect our brand name as a Kenya Sacco movement,” CAK director Marube said.
KUSCCO continues to champion the cooperative movement in Kenya, driving financial inclusion, promoting member-centric leadership, and fostering cooperation among SACCOs. With ongoing legislative reforms and collaborative efforts between stakeholders, the future looks promising for a thriving cooperative sector, poised to propel Kenya’s economic advancement journey from the grassroots up.
The one-week Kuscco event attracted other various businesses and organizations, ranging from banks to real estate, insurance, technology, and ICT.
Share this story:
