The government has stopped all savings and credit cooperative societies from investing in non core business until appropriate regulations and supervision are put in place.
While appearing before the Senate, Cooperatives and Micro Small and Medium Enterprises Development Cabinet Secretary Wycliffe Oparanya said audits show that investment in non-core ventures are among decisions that have plunged the sector into financial turmoil.
Oparanya told senators that the Sacco Societies Regulatory Authority (SASRA) is struggling to oversight saccos due to financial challenges saying most levies collected by the body is diverted to the National Treasury.
The CS is urging the Senate to pass the Sacco Bill, that will criminalize late deduction remittance by employers.
Oparanya has ruled out proposals to bail out struggling saccos advising saccos to liquidate their assets to compensate their members and stay afloat.
