The government has unveiled plans to consolidate accounts of cooperatives and saccos under a central platform for banking as a means to improve security.
Speaking during the launch of Coop Tech platform, a shared system that brings together different cooperative societies and saccos, Cooperative Development and MSME Cabinet Secretary, Simon Chelugui said Coop Tech will ensure the security of every depositor’s fund in the saccos and the cooperatives.
“The shared facility platform will bring together all cooperatives, small and big into a shared platform, an idea we have been talking of and will ensure members’ funds are secure and protected,” the CS stated.
He however stressed that the government was not inclined to any system, but will only set guidelines and rules which will ensure compliance by the cooperative societies and saccos to ensure freedom of the market.
Chelugui further said the government will support efforts of a shared technology amongst saccos as far as they comply with the stipulated rules and regulations established by the government.
“As a government, we will promote efforts of a shared technology as far as rules are followed. We will only set a reasonable number of saccos to which one platform will provide services, this is one of them,” CS Chelugui said.
CS Chelugui further noted that the saccos move was an expression of the bottom-up model, whereby it entails the mobilization of those at the bottom of the pyramid through cooperatives.
“The saccos game is really Bottom-up. The Coop Tech is going to institutionalize and give them hope and directions just as banks do. Cooperative movement is all about aggregation, we may not know collateral. The saccos may give you advances which you may not get in any other financial institution,” CS Chelugui said.
The CS further said plans are underway to oversee the roll-out of the central liquidity fund, which he says will ensure safety of money in cooperatives and saccos and in the event of a challenge, the organizations are able to service their customers.
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