The collapse of Savings and Credit Cooperative Organizations (SACCOs) in Embu County has been attributed to poor management, lack of accountability, and democracy.
Deputy Governor Kinyua Mugo reported that out of the registered 315 Saccos, 126 are dormant and on the brink of collapse due to mismanagement.
Conflicts between management boards and fiscal indiscipline are causing significant damage to many Sacco’s, causing disintegration and damage to their reputation among potential members.
‘Many Saccos have collapsed for lack of accountability and transparency in management of members’ investments,’ he said.
Speaking during this year’s International Day for Cooperatives commonly known as Ushirika Day in Embu Town, the Deputy Governor added that there was lack of democracy in change of leadership through an election.
He added that, Sacco leaders have been retaining power for decades, and it’s time to enforce a three-year term limit to allow others to lead and bring fresh ideas.
Thus, ‘Sacco’s must allow d
emocracy to thrive and the issue of officials continuing to hold on to leadership beyond term limit is bringing conflict of interest,’ he said.
He reiterated the devolved unit’s commitment to revive the dormant Saccos owing to their contribution to wealth and employment creation.
Lastly, Saccos has significantly contributed to the county’s economic growth by providing low-interest loans with flexible payment terms, unlike commercial banks.
Source: Kenya News Agency