Saccos to soon be listed on Nairobi bourse, says PS

Cooperatives PS Ali Noor Ismail gives his keynote address during KUSCCO Sacco Leaders Convention at Laico Hotel Nairobi 30/03/16 PHOTO: MOSES OMUSULA

Savings and Credit Co-operatives (Saccos) in the country may soon be listed on the Nairobi Securities Exchange (NSE), Co-operative Development Permanent Secretary Ali Noor Ismail has said.

The PS said Sacco’s face challenges of limited funds and enlisting them at the stock exchange will enable them raise cash to meet their various financial obligations through the equities market. Speaking yesterday during an inaugural Sacco Leaders’ Convention in Nairobi, Ismail said talks are at an advanced stage to establish a customized module for co-operatives share trading platform at the NSE. “This will enable the members of Sacco’s to freely transfer their shares and get value for them as and when need arises. This will also attract other investors to the co-operative movement which currently has over 14 Million Kenyans,” he said. “We believe once this is done it will unlock the potential of the sector. Sacco’s contribute 45 per cent of the National Gross Domestic Product (GDP), controlling over Sh500 billion.

This is a vital industry that the government cannot afford to ignore,” noted the PS. Section 15(1) of the Sacco Act Cap 488, prohibits Sacco’s from engaging in foreign trade operations, trust operations and investing in enterprise capital beyond the prescribed limits. It also prohibits them from transacting business with non-members. But Mt Elgon MP John Serut who was part of the Departmental Agriculture committee who was present at the meeting told The Standard separately that Parliament can make amendments to the law.”Sacco’s play a big role in the socio-economic well-being of the country,” said Mr Serut.