Cooperative Societies Act, SACCO Act to be amended

By Ronald Owili

County legislations hampering Sacco development, governance and the adoption of ICT are some of the issues the Sacco Leadership Convention is seeking to address during a forum to be held next week.

The Kenya Union of Savings and Credit Cooperatives Chief Executive Officer George Ototo says the convention will also discuss ways of ensuring the cooperative movement in the country capitalizes on devolution to grow.

The Cooperative Movement in Kenya has been the benchmark for other African countries due to its impact on both the economy and the population.

Besides helping to enhance financial inclusion, the Cooperative Movement is also credited with having contributed heavily to national savings currently at 12 percent of the Gross domestic Product, boasting of half a trillion shillings in savings.

Ototo says the Cooperative Movement has been curtailed by laws which are not in sync with the national policies.

”We have forwarded recommendations to to be included in the the budget through the Kenya Private Sector Alliance. Our wish is to have the duty scrapped since it discourages transactions by members through FOSA. If you look at counties like the US, Canada, Australia which Kenya benchmark on Saccos are not taxed,” said Ototo.

The Cooperative Movement has initiated processes to amend the Cooperative Societies Act and Sacco Act.

Players in the cooperative movement in the country have decried the 10% duty charged on Front Office Services Activity.

Among issues the convention will discuss is adoption of IT in their operations to increase efficiency, governance and taxation.

Low participation by the youth in cooperative will also be subject of discussion.

  

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