In an effort to strengthen Kenya’s cooperative sector, leaders convened at the 9th Kenya Union of Savings and Credit Cooperatives’ (KUSCCO) convention in Mombasa, emphasizing the pivotal role of informed leadership and sustainable practices within Savings and Credit Cooperative Organizations
Commissioner for Cooperatives David Obonyo, addressing SACCO leaders, underscored the imperative for leaders to align with their organization’s ethos and ensure sustainability. He emphasized the significance of upholding governing principles, assuring members’ investments’ safety, and fostering growth.
According to Obonyo, SACCO leaders must prioritize members’ interests, securing resources, and facilitating wealth creation, rather than focusing solely on dividends and interests.
Highlighting the importance of problem-solving, Obonyo stressed the need for board members to be proactive in addressing challenges by understanding root causes. He cautioned against board members’ unawareness of SACCO affairs, underlining the detrimental impact on organizational stability.
Moreover, to thrive, SACCOs must exhibit competency, innovation, and self-sustainability in staffing. Obonyo advocated for youth involvement and increased female representation in leadership roles, alongside embracing technology to streamline operations and reduce costs.
Addressing the longstanding management ambiguity between levels of government since devolution, Obonyo assured stakeholders of progress in clarifying roles. Efforts are underway to adopt the Cooperative Societies Bill, aimed at delineating responsibilities between state bureaucracy and counties, thus enhancing operational clarity within the cooperative movement.
Despite challenges, he reiterated the government’s commitment to supporting SACCOs, acknowledging their substantial contribution of over 31% to the nation’s domestic savings. He emphasized the government’s role in fostering an enabling environment for SACCO business, affirming sustained support for cooperative enterprises nationwide.
The Kenyan government has particularly stressed that cooperative movement is the vessel to use in its Bottom-up Transformative Economic Agenda (BETA) due to Cooperatives proven effectiveness in uplifting economic life of the people from the grassroots level.
Obonyo said the government will keep supporting KUSCCO, where all saccos are represented, both in matters finance, materially and in providing counsel and direction.
The commissioner also hinted the government will, through a finance accountability plan, ensure that resources in KUSCCO are secure and that the union is effectively strengthened.
“Any money in KUSCCO is going to be as safe as any shilling anywhere, and this is true also with our own saccos,” he said while commenting on the fallout from the misallocation of funds that had left KUSCCO teetering on the edge last year. However, he observed with clear assurance that the new KUSCCO management had already resolved the issue.
“We are going to support KUSSCO so that it continues with its work of helping the government in economic development,” he said addressing leaders and delegates representing different saccos across the country who had convened for the three- day forum.
The KUSCCO leaders’ convention offered an exceptional landmark opportunity to sacco leaders to discuss matters on how to steer the cooperative enterprise going forward. The commissioner said it was upon sacco leaders to take note of the important issues discussed during the meeting and galvanize their own saccos for success.
As SACCOs navigate evolving landscapes, the 9th KUSCCO convention serves as a pivotal platform for fostering collaboration, innovation, and sustainable growth, ensuring the continued prosperity of Kenya’s cooperative movement.
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