Saccos demand uniform policy to stimulate sector’s growth

CAK chief Executive officer David
MOMBASA, KENYA: The Cooperatives Alliance of Kenya (CAK) has urged both the national and county governments to establish a national policy on the sector’s development to stimulate socio-economic growth in the country.

Speaking in Mombasa ahead of this year’s international co-operatives day to be marked on July 20th, CAK chief Executive officer David Marube, also lamented over billions of shillings in non-remittances owed to savings and co-operatives societies (Saccos) by a number of employers.

''All remittances should be forwarded to Saccos for effective and proper functioning of these organizations and especially for the members to benefit,'' he said.

Marube said a standardised national policy on activities of cooperative societies would spur growth across the 47 counties and eliminate the mushrooming of “fake” saccos that have siphoned funds from unsuspecting members of the public.

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He said cooperatives are a devolved function, operationalisation of a national policy to guide the sector will ensure harmony in the coordination and management of the sector as opposed to the current system where every county is coming up with different laws and regulations.

He lamented that cooperatives had been denied the opportunity to work together and avoid duplications for lack of a national policy to guide their activities.

“We hope that such a unified policy relating to the formation, registration and regulation of cooperative societies will eliminate the existence of pyramid schemes that fleece members” he said at the Mombasa showground.

“We are asking the relevant authorities to expedite the formation of a national cooperative development policy that guarantees the growth of the sector,” he said.

He expressed regrets that pyramid schemes masquerading as Saccos were soiling the sector as they were conning the public of their funds through false promises.

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The unionist said the cooperative societies in the country cut across the key economic sectors including Finance and Housing.

He expressed concern that some counties such as Mombasa and a number of other public organizations universities were not remitting workers’ monthly deductions to their respective saccos.

However, Mombasa County Deputy Governor Dr. William Kingi, who was the chief guest, expressed willingness to remit the workers monthly contributions.

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CooperativesCooperatives Alliance of Kenya