Shirikiana Savings and Credit Cooperative Society is on course to secure Sh. 500 million from the World Bank after completing 12 months of active operations, giving fresh impetus to the newly established cooperative’s ambition to expand access to affordable credit and financial services.
Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Cabinet Secretary (CS), Wycliffe Oparanya, said the Government had already injected Sh. 50 million into the Sacco, with the World Bank committing a further Sh. 500 million, once it meets the required 12-month operational threshold.
Speaking at Kipsoen SDA Church in Kamuneru, Mt Elgon Sub-county, during a sensitisation exercise, Oparanya urged residents to join Shirikiana Sacco and embrace the cooperative movement as a way of mobilising savings, accessing affordable credit and investing in income-generating activities.
Shirikiana Sacco was officially launched by President William Ruto at Masinde Muliro University of Science and Technology in Kakamega in June this year, as a regional cooperative initiative targeting financial inclusion and economic empowerment.
The Sacco initially brought together micro and small enterprises from Bungoma, Kakamega, Busia, Vihiga and Trans Nzoia counties, with an ambition to expand its reach beyond Western Kenya and eventually become a national institution.
The initiative was developed as a platform through which ordinary Kenyans, including farmers, small traders, boda boda operators, salaried workers and other underserved groups, can pool savings, access credit and invest in enterprises.
The Sacco is also designed to go beyond conventional savings and lending by providing members with social protection services. These include support for Social Health Authority (SHA) contributions, education and last-expense needs.
Oparanya said the Sacco had attracted support from Cooperative Insurance Company (CIC), Cooperative Bank and Safaricom, among other partners.
He said the Government’s support for the initiative was part of broader efforts to use the cooperative movement to drive grassroots economic empowerment.
“The cooperative movement is the reliable means to uplift the living standards of Kenyans. It encourages a good saving culture and sustains livelihoods,” Oparanya said.
The CS urged Mt Elgon residents to take advantage of Shirikiana Sacco and other cooperative societies to save and access capital, saying members could use affordable loans to establish and expand businesses.
He said cooperatives remained an important avenue for Kenyans to mobilise resources and invest in productive activities, particularly as the Government implements programmes targeting agriculture, healthcare, affordable housing, MSMEs and technology.
Oparanya also urged residents to make use of Government financing programmes, including the Hustler Fund, Women Enterprise Fund, Youth Enterprise Fund and Uwezo Fund, as well as Kenya Industrial Estates (KIE), to establish and expand businesses.
He said the Hustler Fund had enabled millions of Kenyans to access credit, with borrowers taking loans amounting to Sh. 92 billion.
About 28 million Kenyans, he said, had registered and accessed the Fund, while nearly two million people borrow from it daily.
However, the CS expressed concern over loan defaults and urged beneficiaries to repay their loans on time to maintain good credit records and qualify for higher loan limits.
“Those who borrow should repay their loans on time so that they can continue benefiting from the fund and access more credit,” he said.
Oparanya said economic empowerment remained central to the Government’s efforts to lift citizens out of poverty and improve household incomes, urging residents to embrace cooperatives and Government empowerment programmes to strengthen their livelihoods.
By Cynthia Kingo and Chris Mahandara
