The government is planning to tighten rules regulating the Sacco sector to restore member confidence and enhance accountability.
Speaking during the opening of Nyati Sacco in Nairobi, the Principal Secretary, the State Department for Cooperatives and MSMEs Patrick Kilemi said that the Cooperative Bill 2024 which has since been tabled before the Senate contains some of the tough controls meant to safeguard the sector.
"If approved by Parliament, the bill will pave the way for critical reforms aimed at protecting member deposits and ensuring greater transparency in Sacco operations," Kilemi said.
He added that the bill is expected to eradicate poor governance in the cooperative movement.
“I can report that last week our Cooperative Bill 2024 was read in the Senate for the first time and marched to our Committee of Cooperatives for execution for a second reading. It has been approved by the National Assembly,” the PS said.
The PS further stated 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.
He explained that through the agreement between the national and county governments, they have delineated functions for a smooth workflow that aims to improve efficiency and service delivery to Kenyans.
“The cooperative sector remains a cornerstone of Kenya’s socio-economic development, contributing significantly to the financial inclusion, wealth creation, and poverty alleviation amongst many aspects of our lives. Saccos today continue to play a crucial role in mobilizing savings providing affordable credit fostering economic self-reliance amongst Kenyans,” he added.
He urged cooperatives to help create cooperative laws to promote democracy in Saccos and improve governance and accountability.
On his part, Nyati Sacco chairman Charles Mbuvi said that the opening of Nyati Sacco Plaza is a testament to the Sacco’s commitment to innovation and socio-economic transformation and growth of its members.
“This building is more than just a building and mortar, it is a powerful symbol of our unwavering commitment to our members and a testament to our vision of a future defined by growth, innovation and community impact. The investment in this infrastructure is above all an investment in you, our members,” said Mbuvi.
PS Kilemi lauded Nyati Sacco for its remarkable growth and expansion, highlighting its resilience and significant role in transforming the lives of Kenyans.
Nyati Sacco was founded in 1980.
