Mombasa County Cooperative Development Committee (MCCDC) through its chairperson Madam Alice Jowi, has raised concern regarding the government’s regulations that brought Sacco Societies Regulatory Authority (SASRA) in the management of Saccos, stating that the committee felt SASRA’s terms were stringent and costly to SACCOs.
Sasra’s terms, the committee said, coupled with high inflation rate, introduction of new taxes in the housing sector and rising costs of doing business, all combined will certainly force Saccos to increase costs of their products and services. According to MCCDC, these forced changes will in turn spell doom for the Saccos, because the low-income earners that the establishment was meant to serve will be unable to bear.
“The Social Impact Bill, the introduction of super savers in saccos that we vehemently rejected is going to be reintroduced. It is in our opinion that Saccos should stand firm and protect infiltration of undesired members disguising as financial gurus that will make our saccos more liquid,” the Chairlady added.
The committee also urged all SACCOs within the county to comply with the rules and regulations governing the cooperative movement to ensure order and growth in the sector.
Ms. Jowi further called upon other stakeholders such as KUSCCO, CIC group and Co-op Bank to rise and fight for the SACCOs so as to remain viable and strong in the market highlighting that a lot of resources had been invested into the various societies.
The County Co-operative director, Mr. Nelson Nyoro, further shed light on the issue encouraging societies with one source of income to diversify into other markets, not necessary going outside their core businesses but having a diversified portfolio of members so that when one institution is experiencing difficulties, the others can boost it.
“We have become very deliberate in terms of enforcement. There is a specific regulation charged with enforcement of remittances.” He stated.
Director Nyoro further stressed that the initiative to shift Co-operatives into the Department of Trade & Co-operatives prior to its initial department is a step to ensure accessibility of the services to its members.
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