Mombasa: Cabinet Secretary for Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development, Wycliffe Oparanya has strongly reiterated the ministry's commitment to curb bad governance within cooperatives through the introduction of tough measures including the Co-operative Bill 2025.
According to Kenya News Agency, the Bill that is currently before the Senate entails strong policies that will guide the operations of the society hence will significantly enhance good governance and eventually curb the perennial problem.
Speaking in Mombasa before the Senate Standing Committee on Trade, Industrialization and Tourism, Oparanya noted that the ministry is planning to conduct an overview of the SACCO society ACT 2008, noting that there has been a great shift in the Kenyan market. 'The ACT has existed for quite a long time now therefore there is a need to include new laws that will align with the current business environment within the country,' he said.
'Currently, we have Saccos with over 100 members making it difficult to manage the large groups through an AGM hence we recommend the inclusion of delegates to achieve smooth operations,' said Oparanya. He further expressed dismay with KUSCCO citing a significant drop of approximately Sh.300 billion as he highlighted the lack of strict law and policies as the leading reason thus the need for several reforms within the sector.
The CS further said the government has extended the Hustler Fund refund period to 30 days to ensure that borrowers have ample time to pay their loans. 'Among the 22 million members of the Hustler fund, only 2 million of them remained loyal to paying their loans on time hence they have now unlocked a new level dubbed the 'bridging loan' as an appreciation to the small section that pays the loans on time,' he said.
He explained that through 'bridging loan', the group is entitled to a loan totaling to Sh.150,000 whenever need arises. He further highlighted that the government would allocate Sh.1billion in the coffee sector for the subsidy of fertilizers and chemicals to boost production. The CS commended the government for unwaveringly supporting the coffee sector citing the introduction of the 'Cherry fund' program which seeks to support farmers in managing their farms as they await auctioning.
'Coffee farmers used to stay six months awaiting payment upon supplying thus with Cherry fund, farmers will receive Sh.50 per kilogram for every 1000 kilograms after confirmation from the miller,' he said. Chairman of the committee Senator Issa Boy said that the committee plays an important role in reviewing legislations and policies related to trade, industrialization, and tourism.
'The induction retreat provided a platform for committee members to familiarize themselves with their mandate and prioritize key bills aligned with the government agenda,' said Boy. He added that senators get a chance to gain insights into the status of the cooperatives and MSMEs as well as an overview of the flagship projects aligned with the Bottom-up Economic Transformation Agenda with a focus on legislation designed to enhance transparency and governance in the sector.