The government has suspended registration of new saving and credit cooperative societies for a period of three months following the start of a review of the Sacco Societies Act, 2008.
Speaking during the inauguration of the five-member Committee of Experts tasked with reviewing the law, Cooperatives and Small and Medium Enterprises (MSMEs) Development Cabinet Secretary Wycliffe Oparanya said the process will help accelerating governance, accountability, and regulatory reforms within the industry.
“The Committee will serve for a three-month period, effective immediately, and is expected to provide comprehensive and actionable recommendations to guide future legislative amendments,” said Oparanya.
The committee chaired by Scotland’s Capital Credit Union Chief Executive Officer Marlene Shiels is expected to review industry operations and governance and align them with global best practices.
They will further advice on the establishment of Central Liquidity Facility for all Saccos, Sacco Deposit Guarantee Fund and development of a shared services legal and administrative framework.
“The ongoing legislative process, particularly the Co-operative Societies Bill, 2024, currently before the Senate, and proposed amendments to the Sacco Societies Act, will further reinforce good governance and sector-wide stability,” he added.
This comes as the new Transition Board of Directors of the Kenya Union of Savings and Credit Cooperatives (KUSCCO) takes office for a period of two years.
The eleven-member board is expected to drive restructuring process of the troubled union, oversee asset recovery and protection of cooperative members’ interest and transition to a National Cooperative Federation.
