Nairobi: The government is committed to reform and strengthening of the SACCO sector and today announced the inauguration of two key institutional frameworks aimed at accelerating governance, accountability, and regulatory reforms. The Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development Cabinet Secretary (CS) Wycliffe Oparanya said he had inaugurated a five-member Committee of Experts mandated to review the SACCO Societies Act, 2008, and propose legislative and institutional reforms that align with emerging sectoral trends and global best practices.
According to Kenya News Agency, the committee will evaluate the relevance and effectiveness of the current SACCO Societies Act and align the Act with Cabinet-approved policy directions, which include the establishment of a Central Liquidity Facility for all SACCOs, the creation of a SACCO Deposit Guarantee Fund, and the development of a shared services legal and administrative framework. The committee will also review the SACCO regulations to support effective implementation by analyzing the current SACCO operations within the regulatory environment, benchmarking with global SACCO models, recommending context-specific solutions, and evaluating SACCO administrative structures for effectiveness.
CS Oparanya stated that the committee will serve for a three-month period and is expected to provide comprehensive and actionable recommendations to guide future legislative amendments. Members of the Committee of Experts include Ms. Marlene Shiels (Chairperson), CEO, Capital Credit Union (Scotland); Adv. Maurice Smith, Member, African American Credit Union Coalition (AACUC), U.S. Supreme Court Bar; Adv. Gina Carter, CEO, Husch Blackwell (USA), Board Member, Redwood Credit Union; Counsel Odhiambo Collins Harrison, Advocate of the High Court of Kenya and Expert in Constitutional and Administrative Law; Dr. Gamaliel Hassan, CEO, Stima DT SACCO.
Simultaneously, the Ministry has inaugurated a new transition board of Directors of the Kenya Union of Savings and Credit Cooperatives (KUSCCO) for a two-year term, following appointment by the Commissioner for Cooperative Development. This follows the completion of the one-year term of the previous Interim Board, which commenced on 1st May 2024.
CS Oparanya mentioned that the new KUSCCO Board will lead the restructuring of KUSCCO to enhance efficiency and corporate governance, oversee asset recovery and protection of cooperative members' interests, and prepare KUSCCO for its evolution into a National Cooperative Federation, as envisioned in the ongoing sector reforms. The Members of the KUSCCO Board are David Mategwa, National Chairperson, Kenya National Police DT SACCO, and Ms. Jennifer Mburu, National Vice Chairperson, Mhasibu SACCO, along with Robert Njue, WINAS SACCO; Osmane Khatolwa, Stima DT SACCO; and John Ziro, Imarika DT SACCO. Other members include Dr. Brenda Obondo, KMA SACCO; Philip Rirei, Noble SACCO; Michael Muriithi, Unaitas SACCO; Ms. Priscilla Maranga, Representative, Office of the Commissioner; Mary Kweyu, Invest and Grow SACCO; and Dr. Charles Kioko, GDC SACCO.
The CS explained that the two inaugurations are part of a broader reform agenda to strengthen the SACCO sector's resilience, accountability, and sustainability. 'The Ministry remains committed to promoting inclusive financial systems through cooperative-based structures. The ongoing legislative process, particularly the Co-operative Societies Bill, 2024, currently before the Senate, and proposed amendments to the SACCO Societies Act, will further reinforce good governance and sector-wide stability,' Oparanya affirmed.
The CS congratulated the newly inaugurated Committee of Experts and KUSCCO Board Members, expressing anticipation for their leadership in implementing reforms that benefit millions of SACCO members across Kenya.