Oparanya: Reforms in SACCOs Essential for Economic Growth

Urgent Reforms in SACCOs Essential for Economic Growth, Says CS Oparanya — MSMEs CS Wycliffe Oparanya during a press briefing after meeting SACCOs heads in Nairobi

The Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development, Wycliffe Oparanya has hinted at bringing forth necessary reforms among SACCOS with a renewed emphasis on member satisfaction.

During a press briefing with the Kenya National Police DT SACCO, CS Oparanya lauded SACCOs for mobilizing over Ksh.1.2 trillion in savings, disbursing Ksh.1 billion in loans, and accumulating an asset base of Ksh.1.7 billion.

These figures indicate SACCOs have played a significant role in offering financial inclusion to millions of Kenyans, especially in rural and underserved areas.

“SACCOs have the potential to be powerful drivers of economic growth and social development in Kenya,” said Oparanya.

He added that “by strengthening their governance and providing them with the necessary tools and support, we can unleash their full potential.”

Call for Reforms and Governance

While praising the exemplary performance of the Kenya National Police DT SACCO, the immediate former Kakamenga Governor acknowledged that not all SACCOs in Kenya have achieved similar levels of success.

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According to him, poor corporate governance has been a significant hindrance for many SACCOs.

To address this, Oparanya revealed the government plans to introduce a new cooperatives Bill aimed at enhancing SACCO governance.

He also committed to amending existing legislation to create a more robust regulatory framework to improve the sector’s performance.

Mr. Solomon Atsiaya, CEO of the Kenya National Police DT SACCO, echoed CS Oparanya’s sentiments about the role they have played in empowering communities.

He took the challenge that indeed SACCOs need to stay relevant and adapt to the changing needs of their members.

“The DT SACCO is committed to innovation and member satisfaction. We are constantly looking for ways to enhance our products and services and improve the overall member experience,” Atsiaya said.

Vision for Self-Regulation and Revitalization of KUCSCO

Looking ahead, CS Oparanya expressed a vision where SACCOs will be empowered to self-regulate, with the government providing oversight to ensure the safety of depositors’ funds. This model, he explained, would allow SACCOs to operate with greater autonomy, improving efficiency and member trust.

This even as the CS said there are plans for his ministry to revitalize the Kenya Union of Savings and Credit Cooperatives (KUCSCO) to enhance its operations and explore funding options that will support its growth and sustainability.

September 13, 2024

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.