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Gov’t creates conducive environment for SACCOs to thrive

The government has enacted laws and regulations which have steered the Savings and Credit Co-operative Societies (SACCO’s) into impressive performance even in the wake of the Covid-19 pandemic.

State Department for Co-operatives Principal Secretary Ali Noor Ismail said that many cooperatives posted impressive results even with the challenge of Covid-19 showing the resilience of the movement coupled with the good governance by the state department for cooperatives and other regulatory bodies.

Speaking in Nairobi yesterday during the launch of Ushirika day preparatory activities, Ismail said that going with this year’s Ushirika day theme ‘cooperatives build a better world’, cooperatives have made strides in making people’s lives better.

Ismail said that the government created a conducive environment which came about through institutional reforms in the sector which included the Cooperative Coronavirus Response Committee that rode on the cooperative principle number seven of concern to the community.

“The Central Liquidity Facility and shared services for SACCO’s is being finalized for purposes of inter borrowing and reducing operational costs. The Deposit Guarantee Fund enables compensation of member’s deposits in the event of collapse of a SACCO,” explained the PS.

Ismael said that the government has put in place mechanisms to enable housing cooperatives to provide shelter which is a basic need for cooperators and their families. The majority of the loans were for purchase of land and houses which is a basic need as enshrined in the constitution.

“We have made deliberate efforts to address non-remittance to cooperatives and other outstanding dues will be paid progressively. My department will not allow this to get out of hand,” said Ismail.

He explained that lately, the government has initiated reforms in the transport cooperatives by instituting regulations for the boda boda transport cooperatives adding that this is geared towards bringing sanity and order on our roads and job opportunities in efforts to create a better world for all.

With the general election just around the corner, Ismail called on the 14 million cooperative membership in the country to vote wisely and promote peace before, during and after the elections.

Cooperative Alliance of Kenya Chairman Macloud Malonza said that cooperators around the world have thrived on the human-centered business model, inspired by the cooperative values of self-help, self-responsibility, democracy, equality, equity, and solidarity and the ethical values of honesty, openness, social responsibility and caring for others in building a better world.

“Co-operatives have proven themselves more resilient to crises than the average. They foster economic participation, fight against environmental degradation and climate change, generate good jobs, contribute to food security, keep financial capital within local communities, build ethical value chains, and, by improving people’s material conditions and security, contribute to positive peace,” he said.

Malonza said that they have organized events before the Ushirika day celebrations which include a blood donation drive, sports and family fun day with the Co-operative Environmental Day happening later in October.

By Joseph Ng’ang’a

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