By MKT Reporter
Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development, Wycliffe Oparanya, has disclosed that the government has directed the formation of a new nine-member Board, with a three-year mandate to oversee the revival of the Kenya Union of Savings and Credit Cooperatives (KUSCCO) and restore confidence in SACCOs, as secure investment platforms at the grassroots level.
In a major policy shift, Oparanya revealed that the Cabinet, on Tuesday, approved amendments to the SACCO Societies Act, 2008, under the SACCO Societies (Amendment) Bill, 2023.
He added that the proposed reforms seek to modernise SACCO operations by introducing a SACCO shared services framework to enhance efficiency, establishing a central liquidity facility to enable SACCOs to conduct inter-SACCO transactions, access to short-term loans, and participation in the National Payment System.
“To further refine these regulatory changes, the government will appoint a Committee of Experts to review the SACCO Societies Act and associated regulations,” remarked the CS.
Further, Oparanya hinted that the government will redefine KUSCCO’s mandate, with a special focus on the Central Finance Fund (CFF).
“The SACCO Liquidity Fund (SLF), formerly known as CFF, “will now function as a secondary cooperative under the SACCO Society Regulatory Authority (SASRA) regulation,” he explained, adding that it will operate independently, with its own Board and Chief Executive Officer (CEO), ensuring a structured approach to the recovery and refund process for SACCOs’ owed funds.
Consequently, the CS emphasised that the measures, along with the recently launched Ministry of Co-operative and MSMEs Development Strategic Plan, will greatly benefit SACCO members across the country.
“Our actions are aimed at ensuring better protection of SACCO deposits, minimising government bailout risks, and strengthening the cooperative financial sector,” he stated, maintaining that Co-operatives and SACCOs are the best economic model to empower the people.
The CS at the same time urged Kenyans to seize the opportunities presented by the 2025 International Year of Co-operatives, declared by the UN, to showcase their positive impact in their communities.
He expressed his Ministry’s confidence that the cooperative movement will not only recover but also grow stronger, benefiting millions of members.
