• The International Day of Cooperatives to be marked under the theme, cooperatives, partners for accelerated sustainable development
• The day has been marked since 1923 to acknowledge the contributions of cooperatives according to the United Nations
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As the world celebrates the International Day of Cooperatives on July 1, Kenyans have been told to join saccos and cultivate the saving culture.
Cooperative Alliance of Kenya (CAK) Chairman Macloud Malonza advised Kenyans who want to develop and grow to join saccos as it is the sure way of development.
He said saving ensures the growth and development of an individual despite sudden loss of income.
“Saving ensures that even if you lose your job today, you will still have something to turn to,” Malonza said.
He spoke to the Star during an interview on the upcoming International Day for Cooperatives which is marked as the Ushirika Day in Kenya on July 1.
Malonza said during the IDC, Kenya will be celebrating the revival of the cooperative sector which had gone down some years back.
“But now thanks to efforts by the government, there is a regulator for deposit taking and non-deposit saccos. So the issue of governance is addressed through the regulator and saccos,” Malonza said.
The SACCO Societies Regulatory Authority (SASRA) is the primary regulatory body charged with licensing Deposit‑Taking Sacco Societies (Savings and Credit Co-operatives Societies) - DT regulation 2010 and authorising specified Non-Deposit taking saccos - NDTS Regulations 2021 in Kenya.
The Authority was established as a body corporate in 2010, pursuant to the provisions of the Sacco Societies Act with the primary purpose of streamlining the regulation of SACCOs and Co-operatives in the country.
Its mandate is to regulate, supervise and license SACCOs and Co-operatives in the country while receiving levy contributions from the same in accordance with the Sacco Societies Act of 2008
Malonza noted that currently, Saccos are the fastest-growing financial sector after the banks.
He said there are Saccos now with almost Sh10 billion as an individual Sacco and they are growing.
“The rate of returns on investment is very competitive. Some are even giving a return on investment of up to 18 percent on dividends,” he said.
The chairman said going forward, plans are underway to have the Sacco central which will bring all Saccos together so that they can enjoy the economies of scale.
In addition, Malonza pointed out that there is a Bill seeking to ensure there is a legal framework to take care of Sacco’s both at the National and County levels.
“This will help bring them together to enhance synergy. We do not have a situation where counties have different laws which will affect the growth and development of the Sacco’s,” Malonza said.
Daniel Marube CAK Executive Director said the International Day of Cooperatives was put aside to celebrate the achievements made by cooperatives.
‘Cooperatives have been considered the best model to help in addressing the needs of the common people. There is much more that we can achieve when you work together,” he said.
Marube said cooperatives can be the best means through which the government can achieve its core mandate within its manifesto.
“We have done well in financial penetration through giving people access to financial services,” Marube said.
The day will be celebrated under the theme, “Cooperatives: partners for accelerated sustainable development.
The IDC has been marked since 1923 with the aim of increasing awareness and acknowledging the contributions of cooperatives to resolve some of the major international issues that have drawn the attention of the United Nations.
The day also aims to strengthen and extend partnerships between the international cooperative movement and other outfits of social development.