Mombasa: The Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development, Wycliff Ambetsa Oparanya, has urged SACCOs to invest in robust digital infrastructure, continuous staff training, and effective security protocols to curb the rising cases of cybersecurity threats. Speaking at the Pride Inn Paradise Resort, Mombasa, during the 9th annual leaders themed ‘Defying Economic Challenges, Shaping Generations, and Building a Cooperative Future’ Summit, Oparanya noted that the world is now in an era where a single cybersecurity breach can potentially compromise the financial integrity of an entire SACCO.
According to Kenya News Agency, Oparanya emphasized the critical role of SACCOs in economic inclusion and community development, aligning with the Bottom-up Economic Transformation Agenda. He warned that the sector, which holds over Sh1 trillion in member deposits, must be protected from financial impropriety. Oparanya mentioned that the government has involved relevant agenc
ies to investigate financial misconducts and help recover members’ funds.
Oparanya also highlighted the significance of the Cooperatives Bill 2024, which is currently in Parliament for the third reading. He described it as a transformative measure for the cooperative movement, with legal provisions aimed at safeguarding member deposits and ensuring good governance within SACCOs. The bill addresses emerging issues and encourages transparency, ethical leadership, technological security, and robust audit mechanisms.
David Mategwa, Chairman of KUSCCO, noted that KUSCCO is under the leadership of an Interim Board, supported by a Technical Committee appointed in May 2024 to implement a recovery strategy. He detailed plans for the registration of a new Secondary Co-operative Society to take over operations of the Central Finance Fund, which will be fully licensed and regulated by SASRA. Mategwa called for strengthened governance structures, digital transformation investment, and strategic partnerships to enhance s
ector competitiveness.
Arnold Munene, the Group’s Managing Director, reiterated the SACCO sector’s resilience and growth, noting its significant contribution to Kenya’s economy. He referenced the SACCO Supervision Report 2023, which shows that regulated SACCOs have improved in financial performance, with total assets standing at Sh971.96 billion, accounting for 6.43% of Kenya’s nominal GDP. SACCOs disbursed Sh460 billion in loans in 2023, supporting key sectors like land and housing, education, agriculture, and MSMEs.
Munene also reported an 11.5% growth in gross loans to Sh758.57 billion and a 6.57% increase in membership to 6.84 million, significantly impacting employment by providing jobs for 11,883 individuals. Despite economic challenges such as rising inflation and fluctuating interest rates, Munene expressed confidence in the sector’s ability to leverage opportunities for growth, innovation, and transformation.