Ministry suspends new SACCO registration for three months

Cabinet Secretary Cooperative Wycliffe Oparanya before Committee on Appointment on August 4, 2024 [Elvis Ogina, Standard] The Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development has announced a three-month suspension of the registration of new Savings and Credit Cooperative Organizations (SACCOs). Cooperative Cabinet Secretary Wycliffe Oparanya has said the suspension will be in effect while a committee of experts reviews the situation. The Ministry has also introduced two institutional bodies aimed at improving governance, accountability, and regulatory reforms within the cooperative sector. The bodies include a Committee of Experts tasked with reviewing the SACCO Societies Act and a new Transition Board for the Kenya Union of Savings and Credit Cooperatives (KUSCCO). The objective of these initiatives is to align cooperative financing with global regulatory and governance standards. The five-member committee, which includes Chairperson Marlene Shiels (CEO of Capital Credit Union in Scotland), Maurice Smith (a member of the African American Credit Union Coalition in the USA), Gina Carter (CEO of Husch Blackwell and Board Member of Redwood Credit Union in the USA), Counsel Odhiambo Collins Harrison (a Kenyan legal expert in constitutional law), and Gamaliel Hassan (CEO of Stima DT SACCO), has been appointed to lead the reform efforts. They will be supported by a technical team led by Morris Muriungi and John Ongatta. This committee has a three-month mandate to assess the relevance of the current Cooperatives Act, propose legal and institutional reforms, and evaluate potential models such as a Central Liquidity Facility, a Deposit Guarantee Fund, and shared services frameworks. Additionally, an 11-member Transition Board for KUSCCO has been formally inaugurated. The board is responsible for leading the restructuring and transformation of the organization into a National Cooperative Federation. CS Oparanya emphasized the importance of this board in protecting members' interests, recovering assets, and guiding KUSCCO to become a modern and efficient cooperative apex body. The board is composed of leaders from various sectors of Kenya's cooperative movement, including Chairperson David Mategwa (Kenya National Police), Vice Chairperson Jennifer Mburu (Mhasibu), and members such as Brenda Obondo (KMA), Robert Njue (WINAS), Osmane Khatolwa (Stima DT SACCO), John Ziro (Imarika DT SACCO), Philip Rirei (Noble), Michael Muriithi (Unaitas), Priscilla Maranga (Office of the Commissioner), Mary Kweyu (Invest and Grow), and Charles Kioko (GDC). The board will serve a two-year term, succeeding the interim board whose one-year tenure ended on May 1, 2025. The inauguration of these teams supports ongoing legislative efforts, including the Co-operative Societies Bill of 2024, which is currently under consideration by the Senate. CS Oparanya expressed satisfaction that the committee would conduct a thorough and objective review of the legal frameworks. He reiterated the ministry's commitment to fostering inclusive financial systems based on cooperative structures. "These reforms aim to build a sustainable future for over 14 million SACCO members," Oparanya stated. "We believe in the transformative power of cooperatives, and that starts with strong governance and policy alignment." The Ministry's actions mark a critical juncture in modernizing Kenya's cooperative sector, which remains a pillar of the country's financial inclusion strategy.

Ministry suspends new SACCO registration for three months

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Ministry suspends new SACCO registration for three months

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