The Kenya government is introducing stricter regulations in the Sacco sector to restore member confidence and enhance accountability. The move comes in a response to growing concerns over financial mismanagement within Saccos, which has eroded public trust.
The Principal Secretary, State Department for Cooperatives and MSMEs, Mr Patrick Kilemi, speaking on Thursday at the official opening of Nyati Sacco Plaza in South C, Nairobi. revealed that as part of government’s commitment to strengthening oversight and policy reforms, the Cooperative Bill 2024 has been tabled before the Senate. If approved by Parliament, the bill will pave way for critical reforms aimed at protecting member deposits and ensuring greater transparency in Sacco operations.
The Bill is also expected to eradicate poor governance in cooperatives. “I can report that last week our Cooperatives Bill 2024 was read in the Senate for the first time and marched to the committee of cooperatives for execution for second reading. It has been approved by the National Assembly,” said the PS.
The PS said that cooperative laws have not been in tandem with the 2010 constitution, a matter he argues involves citizens from different corners of the country hence making it a devolved function. “The cooperative sector remains a corner stone of Kenya’s socio-economic development, contributing significantly to the financial inclusion, wealth creation, poverty alleviation amongst many aspects of our lives. Saccos today continue to pay a crucial role in mobilising savings providing affordable credit fostering economic self-reliance amongst Kenyans,” he added.
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His comments come amid rising public outrage over the alleged mismanagement of funds at Kenya Union of Savings and Credit Cooperatives (KUSCCO). The PS urged cooperatives to help create laws to promote democracy in SACCOs and improve governance and accountability, to ensure checks and balances.
For his part, Nyati Sacco Chairman, Mr Charles Mbuvi ,said the opening of Nyati SACCO Plaza is a testament to the Sacco’s commitment to innovation, socio-economic transformation and growth of its members.
“This building is more than just a building and mortar,” said Mr Mbuvi, “it is a powerful symbol of our unwavering commitment to our members and a testament of our vision of a future defined by growth, innovation and community impact. Our investment in this infrastructure is above all an investment in you, our members.”
PS Kilemi lauded Nyati Sacco for its remarkable growth and expansion, highlighting its resilience and significant role in transforming the lives of Kenyans. The PS was accompanied by Commissioner for Cooperatives David Obonyo, Nyati Sacco Chairman Charles Mbuvi, CEO Dr Julius Bett, and other industry stakeholders.
Founded in 1980 by the then employees of Securicor Security Services (K) Limited (today’s G4S Security Services), Nyati Sacco has grown into a leading financial institution, boasting a membership of over 30,000.
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