Nairobi: Savings and Credit Cooperative Organizations (SACCOs) have been urged to adopt sustainable reporting practices to enhance climate risk management, transparency, and customer confidence. The call to action emphasizes the need for SACCOs to strengthen their business strategies by addressing emerging global issues such as climate change.
According to Kenya News Agency, Cooperative Alliance of Kenya (CAK) Chief Executive Officer Daniel Marube highlighted the importance of sustainable reporting in the evolving global market dynamics. During the opening of a one-week audit, governance, and risk management forum for cooperatives at the Voi Wildlife Hotel, Marube stated that SACCOs must compete with commercial banks by broadening their business approaches, particularly in engaging the growing youth demographic.
The forum, organized in collaboration with the Institute of Directors Kenya (IODK), titled 'Effective Risk Management and Audit Forum', serves as a platform for cooperative leaders to review and enhance supervisory roles, audit functions, and risk mitigation strategies. Marube noted that adopting sustainable business models would foster new growth avenues and enhance product value.
Marube emphasized that young people under 20 comprise nearly 70 percent of Kenya's population, suggesting that sustainable reporting can provide viable options for this demographic. He pointed out that commercial banks and listed organizations have already started publishing sustainability reports focusing on climate change and youth engagement.
Challenges faced by SACCO boards, such as lack of capacity and inconsistencies, could be alleviated through sustainable reporting, which also aligns with international standards. Governance expert Zack Omukalla echoed these sentiments, asserting that sustainable reporting could yield impressive business results by incorporating climate change considerations and building depositor confidence.
Omukalla further suggested that sustainability reports should be integral to business plans, addressing risks and environmental concerns, and ensuring quality workforce management. Nelly Okendo, Director at Apstar Sacco, emphasized the role of sustainable reporting in enhancing operational transparency and supporting strategic business plans.
Cyrus Magut, CAK Board of Management Vice Chairman, announced plans for intensive training for directors and top management to adapt to changing business dynamics. This training aims to strengthen governance and accountability within cooperative societies, addressing leadership and sustainability challenges.
The cooperative movement in Kenya plays a crucial role in resource aggregation and economic development across multiple sectors, making these initiatives vital for sustained growth.