Savings and Credit Cooperative Societies in Kenya have been challenged to adopt new market strategies that will cushion them against external shocks in the ever-changing competitive cooperative sector.
This is according to the Cabinet Secretary for Cooperatives and SMEs Simon Chelugui who spoke during the 38th annual general meeting of Kimisitu Sacco Society on Saturday at KICC.
The CS said cooperative societies should exploit the comparative advantage in the sector, recruit new members and expand their outreach and competitiveness.
The CS also cautioned Saccos against unhealthy internal competition as it interferes with smooth running of such institutions.
Kimisitu is a tier one Sacco with an asset base of 9.1 billion shillings and a membership of more than ten thousand people. It was founded in 1985.
Kimisitu Sacco chairman Jotham Opiyo said the Sacco’s growth is attributed to wise investment decisions by members, over the years.
Simon Chelugui, CS for Cooperatives challenged the sacco to be able to make provisions for capitalization of your society so that incase of challenges and pandemics like Covid, drought your society is not affected.
"Sustainability of your Sacco is much more important than a one-day dividend payout. We are moving and mobilizing with the formation of government this establishment of a standalone ministry of cooperatives and SME, the cooperative future is bright," said Chelugui.
The Ministry will continue to strengthen cooperatives to upscale value addition and agro processing capabilities with a view to increase their competitiveness and return to members. Cooperatives are encouraged to provide auxiliary services like warehousing, transport, distribution and market linkages.
“Let us pay members reasonable interests, return on investments and retain our Sacco, build on its strengths like what banks do.”
“Our active membership grew by 15.5 percent to 10,492 in the year 2022. The total asset base increased from 8.5 billion to 9.1 billion in 2022. The key achievement for the Sacco in the financial year 2022 is to hit 1 billion shillings mark in revenue actualization which has been a dream for this Sacco for a number of years,” added Kimisitu Chairman Jotham Opiyo.
