Cabinet Secretary (CS) for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs), Wycliffe Oparanya, has urged small and medium business owners to embrace Savings and Credit Cooperative Organizations (SACCOs), to cultivate a savings culture, and to access affordable credit to grow their enterprises.
Oparanya said SACCOs provide an important avenue for small-scale traders to save, access loans, and build sustainable businesses, especially at a time when many entrepreneurs face challenges accessing affordable capital.
Speaking at Sibanga in Cherangany, Trans Nzoia County, the CS cautioned traders against relying on informal lenders who charge high interest rates, saying such borrowing undermines livelihoods and makes it difficult for entrepreneurs to sustain their businesses.
“When we visit traders and encourage them to join SACCOs, many tell us they are in ‘chamas’ yet they carry very high risks. The treasurer can disappear with your money, or on days when business is slow, you are still required to contribute. It just makes life difficult,” he said.
He encouraged traders to join SACCOs and make regular savings, noting that even small contributions could accumulate into meaningful amounts that can later be used to access credit and invest.
“I want people to invest and join SACCOs to be able to take loans for their businesses. Come in large numbers and save even as little as possible. By the end of the month, the accumulated amount will be of help,” he stated.
Oparanya said technology has transformed the cooperative sector by enabling members to access SACCO services, monitor their savings, and conduct transactions through digital platforms without visiting physical offices.
“Because of technology, you can use mobile banking regardless of where you are. Therefore, you must embrace technology as a business person,” he said.
The CS said the government is implementing programmes aimed at expanding access to capital for small businesses and young entrepreneurs.
He said the Hustler Fund has so far disbursed more than Sh90 billion, with 28 million Kenyans registered, adding that about two million people access loans through the Fund daily.
“Over Sh90 billion has been borrowed so far for businesses, and 28 million Kenyans have signed up for the Fund. Every day, two million people take loans through a seamless process,” he said.
He added that the government is also using the NYOTA Fund to support young people while encouraging them to join SACCOs to develop a savings culture and improve access to credit.
He commended the Cooperative Bank and the Cooperative Insurance Company (CIC) for providing financial and insurance services to members of the cooperative movement, saying such interventions help small businesses overcome challenges associated with access to capital and high interest rates.
The CS further said the government is working to improve the operating environment for small businesses by providing designated trading spaces.
“More than 400 markets have been constructed across the country to provide traders with secure spaces to conduct business, with some facilities offering internet connectivity and storage areas,” he stated.
Oparanya said access to proper business premises, affordable credit, and digital financial services will help MSMEs expand their operations and contribute to economic growth.
He urged members of the cooperative movement to work together to strengthen SACCOs to continue supporting entrepreneurs and communities, noting that a strong cooperative movement will contribute to economic stability by enabling members to pool resources, access affordable credit, and invest in productive activities.
By Isaiah Nayika and Sandra Omondi
