On Thursday 22nd August 2024, the Authority’s Chairman Hon Jack Ranguma, Board and Management, met with the Cabinet Secretary, Ministry of Co-operatives and Micro, Small & Medium Enterprises (MSMEs) Development Hon. FCPA Wycliffe Ambesta Oparanya, EGH for a brief on the status of the SACCO industry and emerging policy issues. Also present were the PS Patrick Kilemi, State Department for Cooperatives and Mr. David Obonyo, Commissioner for Cooperatives Development.
Among the key issues presented was an update of the Industry performance and the Annual Sacco Supervision Report ahead of its launch. The industry remains financially sound closing at Ksh. 1 Trillion in assets as at July 2024. However they highlighted the need to urgently operationalize the Deposit Guarantee Fund as a safety net for depositors when a Sacco fails. The CS was equally briefed on what the Authority is doing within the existing legal framework to stabilize the few Saccos experiencing financial difficulties in addition to amendments of the Sacco Societies Act, 2008 to further entrench good governance.
It is apparent that with the growth and development of the Sacco industry, there is an urgent need to enhance the regulatory framework to address emerging challenges for a sustained growth while adequately protecting member deposits from mismanagement by those entrusted with leadership for such a critical industry in Kenyan economy.
