Nairobi, 11th September 2024 – The Cabinet Secretary for the Ministry of Cooperatives, Micro, Small & Medium Enterprises (MSMEs), Hon. FCPA Wycliffe Ambetsa Oparanya, EGH, officially released the SACCO Supervision Annual Report 2023 at an event held at the Sarova Panafric Hotel. The event was attended by the Principal Secretary, State Department of Cooperatives, PS Patrick K. Kilemi, and Commissioner for Cooperatives Development, Mr. David Obinyo, Hon. Jack Ranguma, Sasra Board Chairperson, SASRA Board, key market and industry players, management, and staff.
In his address, CS Oparanya highlighted the resilient growth of the SACCO industry despite facing challenging economic conditions and various policy and market limitations. “Looking at the 2023 Annual SACCO Supervision Report, I am happy to report that the SACCO industry has continued to grow,” said CS Oparanya.
The report revealed that total membership among the 357-regulated SACCOs increased by 6.57%, reaching 6.84 million members in 2023, up from 6.42 million in 2022. However, the Cabinet Secretary noted that this figure represents just under 30% of the total adult working population in Kenya, indicating significant potential for further growth, especially when compared to countries with over 40% penetration rates as reported by the World Council of Credit Unions (WOCCU).
The loan portfolio for regulated SACCOs saw an 11.50% increase, reaching Kshs 758 billion in 2023. Despite the impressive growth in loans, the increase in deposits lagged behind at 9.95%, compared to 9.84% in the previous year. This created a financing gap that was mainly bridged through member share capital and retained earnings.
CS Oparanya underscored the Ministry’s ongoing efforts to strengthen the legal and regulatory frameworks governing SACCO leadership and management. He acknowledged, however, that mismanagement and corrupt practices still persist in some cooperatives. “Dealing with mismanagement cannot be the business of the Government alone,” he emphasized.
The CS alluded that The Ministry is exploring policy options to expand the jurisdiction of the Cooperative Tribunal to include disputes between cooperatives and employers, aiming to expedite the resolution of non-remittance issues. Other measures include the introduction of stricter compliance regulations, robust enforcement mechanisms, and increased public awareness regarding remittance obligations.
Lastly, CS Oparanya reiterated the Government’s commitment to supporting cooperative enterprises as vital contributors to the Bottom-up Economic Transformation Agenda and the Kenya Vision 2030 goals. The Ministry will continue to collaborate with the SACCO industry to align with the United Nations Resolution, promoting the use of cooperative enterprises as vehicles for economic empowerment and poverty alleviation.
The Cabinet Secretary also called on stakeholders, particularly the media, to play an active role in educating the public about the risks associated with engaging in SACCO business with unlicensed entities, specifically those resembling pyramid schemes. Click here to watch the full session.
