Nairobi: The government has embarked on an appraisal of the Sacco Societies Act 2008 in order to strengthen and restore trust, transparency, and accountability in the cooperatives sub-sector. Prime Cabinet Secretary Musalia Mudavadi said the reforms further aim to root out graft by rogue officials whose actions have disillusioned society members and soiled the image of Sacco societies in the country.
According to Kenya News Agency, Mudavadi emphasized that the comprehensive framework aims to establish a more robust, transparent, and accountable sector. The government has constituted a high-level committee of experts, comprising both international professionals and distinguished local practitioners, to undertake a comprehensive review of the Sacco sub-sector's legal framework. This committee is mandated to identify and address legal and regulatory shortcomings that have enabled mismanagement and undermined public confidence.
The reforms aim to culminate in the review of the Sacco Societies Act 2008 and the development of regulations to operationalize both the amended Sacco Societies Act and the new Co-operatives Act. Mudavadi also highlighted the government's commitment to pursuing the recovery of misappropriated funds and holding accountable those found culpable for embezzlement.
As part of the National Economic Transformation Agenda, targeted interventions in high-impact value chains, such as coffee, cotton, dairy, beef, and leather, are being implemented. These sectors are seen as pivotal to economic development, with potential for increasing rural incomes and securing livelihoods. In the coffee sector, reforms have been introduced to improve transparency, accountability, and efficiency, including restructuring the licensing framework.
Mudavadi announced an increase in the Coffee Cherry Advance Revolving Fund's capitalization and a debt waiver for coffee co-operative societies. The cotton sub-sector is undergoing modernization in ginneries to revitalize cooperatives, while significant funds have been allocated to modernize the New Kenya Co-operative Creameries in the dairy sector.
Efforts are also underway in the beef and leather value chains, where a livestock sector working group has been established to dismantle bottlenecks and unlock opportunities for pastoralist communities. The government is promoting livestock cooperatives and revitalizing existing ones in arid and semi-arid lands.
Mudavadi stressed the importance of grassroots institutions as last-mile service delivery hubs, facilitating market access, value addition, and access to affordable credit. This approach aligns with the Kenya Kwanza administration's strategy of creating jobs and enhancing rural livelihoods.
Cooperatives and Micro-Small and Medium Enterprises Cabinet Secretary Wycliffe Oparanya highlighted the central role of cooperatives in the bottom-up economic transformation agenda. He emphasized their importance in providing affordable credit and supporting youth and women to drive sustainability.
Chairman of the Cooperative Alliance of Kenya, McCloud Malonza, addressed the impact of climate change on agriculture-based cooperatives and urged the government to integrate cooperatives into national conservation efforts. He emphasized their potential role in mitigating climate change effects and earning from carbon credits.
Cooperatives play a crucial role in Kenya's economy, contributing significantly to national savings and employment. This year's Ushirika Day, coinciding with the United Nations' International Year of Cooperatives, is themed 'Driving inclusive and sustainable solutions for a better world'.