President Uhuru roots for policy to tame rogue saccos
SEE ALSO :Use saccos to fight poverty, corruptionAs Kenya marked the 97th International Co-operative Day at the Kenyatta International Convention Centre (KICC) yesterday, President Uhuru Kenyatta said the government will increase policy interventions to fix loopholes in the sector. “I direct the Ministry of Industry, Trade and Co-operatives to fast-track the formulation of the National Co-operative Policy and immediately operationalise the proposed Sacco Societies Fraud Investigation Unit (SSFIU) within the Sacco Societies Regulatory Authority (SASRA),” said the President. Restructuring SASRA is one of the recommendations in the proposed National Co-operative Development Policy, which is currently being considered by Cabinet. “The government recognises the need to strengthen enforcement and therefore proposes to restructure SASRA to allow it regulate all financial cooperatives,” the draft policy states. Industry, Trade and Co-operatives Cabinet Secretary Peter Munya concedes that the decentralisation of cooperative management brought on challenges that the State hopes the new policy will cure. Closer cooperation “Since 2013 when the devolved system was implemented, challenges have emerged in the management and supervision of the co-operatives that call for closer cooperation between the national and the county governments,” Munya said. If ratified, the policy will also give a clear separation of duties between the county and national governments. Richard Nyakenogo, the Group General Manager for Co-operative Business at CIC Group, said a distinction of the roles undertaken by the two governments would align the sector. “It is a critical thing at the moment because if governance is not properly aligned in the government sector the cooperatives cannot thrive. There is every need for the two arms of government to ensure there are clear policies that are assisting the running of these institutions,” Nyakenogo said.
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