By Our Reporter
Worth Noting:
- He said good management of co-operative societies through honest and dedicated leadership and stewardship has become a key pillar in the transformation of Kenya’s economy towards achieving financial inclusion and boosting liquidity.
- “I urge SACCOs through their various leaders and member participation to remain focused and united towards achieving your objective in line with the Cooperative Principles and Values of democratic member control, economic member participation and equity,” said Mudavadi.
- In the speech that the Prime Cabinet Secretary read on behalf of the President, he noted the unique nature of the cooperative business model in aggregating both human and capital resources that focuses on uplifting livelihoods of Kenyans at the bottom of the economic pyramid. This he said played part that informed the Kenya Kwanza Economic Transformation Agenda (BeTA).
Prime Cabinet Secretary Musalia Mudavadi has commended the power of Savings and Credit Cooperative Societies (SACCOs) for the role they play in transforming the lives of Kenyans, contributing immensely in the growth of the country’s economy and empowering societies.
Speaking in Ol Kalou town, Nyandarua County where he represented President William Ruto in the inauguration of TOWER SACCO building, a savings and credit co-operative society with over 200,000 members, Mudavadi lauded the move being spearheaded by SACCOs across the country in cultivating the culture of savings among Kenyans.
“The power of co-operatives is so strong and many economies including economies of developed countries like Denmark and many others have a history that relates to their foundation on co-operatives and their contribution towards the empowerment of citizens,” said Mudavadi.
“As TOWER SACCO, I want to believe that you will become bigger since you have done it and you can do it even better. The support you have given this government through your initiative with a financial base of 20 billion Kenya shillings signifies a huge contribution to the Bottom-Up Economic Transformation Agenda of Kenya Kwanza’s PLAN,” said Mudavadi.
Mudavadi said as TOWER SACCO continues to tower, many Kenyans and particularly its members continue to see and embrace great opportunities beyond the horizon.
Acknowledging how SACCOs continue to play a central role within the society, the Prime Cabinet Secretary also pointed out the need of members of SACCOs uniting towards achieving a common goal.
He said good management of co-operative societies through honest and dedicated leadership and stewardship has become a key pillar in the transformation of Kenya’s economy towards achieving financial inclusion and boosting liquidity.
“I urge SACCOs through their various leaders and member participation to remain focused and united towards achieving your objective in line with the Cooperative Principles and Values of democratic member control, economic member participation and equity,” said Mudavadi.
In the speech that the Prime Cabinet Secretary read on behalf of the President, he noted the unique nature of the cooperative business model in aggregating both human and capital resources that focuses on uplifting livelihoods of Kenyans at the bottom of the economic pyramid. This he said played part that informed the Kenya Kwanza Economic Transformation Agenda (BeTA).
Mudavadi said the Kenya Kwanza administration is fully behind and will continue supporting the growth of SACCOs as a way to enable Kenyans own their economy through self-empowerment, improved incomes, employment and wealth creation.
“The Savings and Credit Cooperatives (SACCOs) have witnessed rapid growth in the last few decades. It now boasts of savings mobilization of over Ksh. I trillion, which is 30 percent of our national savings. This is why SACCOs will play a key role in our financial inclusion agenda by being among the key intermediaries on disbursement of the Second and the Third products of the Hustler Fund. We expect that SACCOs will help the Fund improve liquidity, increase diversity in membership base and the savings culture, and also sustainability through digitalization of products.” read part of the President’s speech.
In the speech, the President also addressed his administration’s commitment to the implementation of the Sessional Paper No. 4 of 2020 on National Cooperative Policy whose theme is: Promoting Cooperatives for Socio-Economic Transformation.
The Sessional Paper provides guiding policy in legal, institutional and capacity building of cooperatives, in a devolved system of governance.
“As part of implementing the Sessional Paper, we have a draft Cooperatives Bill which is in the process of being introduced in Parliament. We are in the process of amending the Sacco Societies Act; to establish a central liquidity facility and a shared-services platform. This facility will improve Cooperatives’ services to members and cushion them against financial risks. It will also boost liquidity in the SACCO sub-sector by providing for short-term inter-Sacco borrowing, and access to the National Payment System,” further read part of President Ruto’s speech.
The government also aims at undertaking key Cooperatives reforms that will include revitalization of key production value chains in agriculture, to improve livelihoods of farmers. The value chains targeted are dairy; pyrethrum; horticulture that includes potatoes and cabbages; leather and leather products; textile and apparel; edible oils; tea; artisanal mining and fishing; and maize and other cereals.
“We therefore also encourage MSMEs to transit into Cooperatives to provide skills and building materials to the housing sector. This will complement government programs to facilitate provision of common basic infrastructure to qualifying Cooperatives and other real estate developers,” read part of the President’s speech.
Mudavadi also pointed out that the government is exploring ways to maximize leveraging on the existing cooperative structure in rolling out affordable housing; universal healthcare; and pension schemes, to Kenyans at the bottom of the economic pyramid.
TOWER SACCO boast of 26 branches spread out across the country with a membership of over 200,000 members.
It was established 47 years ago as Nyandarua Teachers Savings and Credit Society before transforming into the now TOWER SACCO that continues to tower and has become a beacon of hope not only to its members in Nyandarua county and its environs but to the country at large.
The Prime Cabinet Secretary was accompanied by Cabinet Secretary for Co-operatives Simon Chelgui, Nyandarua Governor Moses Kiarie Badilisha, Senator John Methu, Women Representative Faith Gitau among other dignitaries.
