@Alicewangechi
As the President makes plan to reconstitute his Cabinet, members of a Sacco have appealed to him to appoint a CS with the know-how of running cooperatives.
The President dissolved his Cabinet last week following weeks of protests by the youths that also led to the withdrawal of the Finance Bill, 2024.
But members of Anchor Premier Sacco have said having somebody with the experience of running cooperative societies to head the Ministry of Cooperatives and Micro, Small and Medium Enterprises Development, would help bolster the sector.
Sacco chairperson Joseph Mbai said the sector has the potential to greatly impact the economy if well-managed.
He cited the Hustler Fund introduced by the Kenya Kwanza government in 2022, which provides cheap loans to Kenyans.
The government last year launched the second phase of the fund that allowed Saccos to access loans of between Sh20,000 to Sh1 million, with an interest rate of seven per cent per annum on reducing balance and repayable in six months.
But Mbai said the fund should be expanded to offer more financial support to Saccos and help them support their members better.
“Expanding the fund would enable more Saccos to access more funds and help make them more liquid to provide funds to their members and consequently support the economy. This is why we need somebody with Sacco experience to head the ministry,” he said.
Saccos, he said, have structures and are regulated by the Saccos Societies Regulatory Authority, which he said ensures they repay their debts.
With a large number of Kenyans being members of various Saccos, Mbai said expanding the fund would have a major economic ripple effect and expand the revenue base for the government.
Daniel Kagui, a Sacco member, challenged the government to consider shelving some of its plans to cushion Kenyans from the skyrocketing cost of living.
“It’s important the President takes care of our taxes. We understand that the debts have to be paid but what if we pay the debts and die in the process because we cannot live?” he posed.
Kagui said the country has a wealth of resources that if managed well can sustain it and stem the need to borrow externally.
“Imposing taxes is not the solution. The solution is managing what we have well and living within our means. If we borrow more money, we will end up in a deeper pit,” he said.
Member Carol Kamau underscored the need for the government to provide a conducive environment for Kenyans to work and earn a living.
This, she said, will provide more revenue for the government while bettering the living standards for Kenyans.
“If someone is able to take a loan from a Sacco and do business, they will feed their families and at the same time help the Sacco to keep running. They will be providing jobs in their business but also sustaining other jobs which also serves the government,” she said.