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Sacco bosses face jail terms for paying dividends using bank loans

Wycliffe Oparanya, Cabinet Secretary for Ministry of Cooperatives and MSMES and Macloud Malonza, Chairman Cooperative Alliance of Kenya (CAK) at the 3rd annual Cooperative Movement Stakeholders' forum, held in Naivasha. [Nanjinia Wamuswa, Standard]

Cooperatives, Micro Small and Medium-sized Enterprises (MSMEs) Development Cabinet Secretary Wycliffe Oparanya has warned loss-making Savings and Credit Cooperative Societies (Saccos) against taking loans to pay dividends to their members.

Oparanya said Sacco managers will be jailed if they attempt to issue dividends from loans starting next year.

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