Cabinet Secretary for Co-operative and Micro, Small, and Medium Enterprises (MSMEs) Development, Simon Chelugui, reiterated the government’s steadfast dedication to bolstering Savings and Credit Cooperative Organizations SACCOs during the culmination of the 9th Annual SACCO Leaders Convention in Mombasa.
Addressing a gathering of SACCO leaders and delegates, CS Chelugui emphasized the fundamental role cooperatives play in fostering financial inclusion across Kenya. He stressed how SACCOs have historically served as the bedrock of financial inclusivity, providing indispensable services and promoting financial literacy among a significant portion of the Kenyan populace.
Furthermore, Chelugui highlighted the multifaceted contributions of cooperatives, including facilitating access to affordable housing and essential services, thus ensuring that every Kenyan is part of the nation’s economic advancement journey.
“It is against this backdrop that the government has recognized cooperatives as key enablers of implementing the BETA Agenda,” he affirmed.
Elaborating on the government’s initiatives, CS Chelugui outlined several legal amendments aimed at enhancing the efficiency and resilience of the cooperative sector. Notably, the SACCO Societies Act has been revised to bolster short-term liquidity through inter-borrowing mechanisms and access to central payment systems. Additionally, these amendments seek to fortify confidence among SACCO members by establishing a Deposit Guarantee Fund.
Looking ahead, the Cooperative Act, currently under review, is poised to introduce prudential regulations tailored for startups and small SACCOs not regulated by the SACCO Societies Regulatory Authority (SASRA).
CS Chelugui emphasized the importance of stratifying SACCOs into tiers based on size, with each tier subject to specific prudential standards enforced by county governments. To facilitate this, the national government commits to supporting counties in developing standards and enhancing their capacities through comprehensive training programs.
“These measures are designed to ensure financial stability within the cooperative movement and the entire country, ensuring that a shilling saved in a SACCO is as safe as one saved in a bank,” Chelugui asserted.
Highlighting the government’s broader economic agenda, CS Chelugui underscored ongoing interventions aimed at reinforcing various sectors through cooperative initiatives. These efforts span across dairy, cotton, coffee, the blue economy, mining, beef, and leather industries. Such endeavors align with the government’s efforts to establish an enabling policy and legal framework conducive for promoting growth and sustainability.
In closing, CS Chelugui commended SACCO leaders for their unwavering commitment to driving sustainable development and encouraging inclusive economic growth across the nation.
He acknowledged the crucial role cooperatives play in improving the livelihoods of Kenyans, embodying the spirit of unity and collaboration to achieve shared prosperity.
“Cooperatives have empowered Kenyans to overcome challenges and seize opportunities,” he concluded.
The government’s reaffirmation of support for SACCOs reflects its commitment to promoting financial inclusion and spurring economic empowerment for all Kenyans, underscoring the integral role of cooperatives in the nation’s development trajectory.
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