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October 17, 2018

Sacco law changes will create classes – official

Daniel Marube, CEO Co-operative Alliance of Kenya./COURTESY
Daniel Marube, CEO Co-operative Alliance of Kenya./COURTESY

Saccos could become discriminatory institutions where a super group of individuals would have special rights if a Bill in Parliament becomes law, a cooperative official has said.

Co-operatives Alliance Kenya CEO Daniel Marube on Tuesday said a “faceless person” presented a Bill before Parliament seeking to allow ‘strangers’ to join saccos.

He said the social impact members would create their own fund and manage it to the level of a corporate entity.

Marube said CAK - the umbrella organisation for cooperatives – was not consulted on the proposed amendments to the Co-operative Societies and Sacco Societies Acts.

The proposal is believed to be among miscellaneous amendments in the Statute Law (Miscellaneous Amendments) Bill dated April 10.

It was sponsored by National Assembly Majority leader Aden Duale. The bill was tabled in Parliament and is at public participation stage before it can be debated in the House.

Marube said if the bill goes through, social impact members will be free to join the saccos without registration and will not make contributions.

He said they would use member contributions as security and profits they make would be shared among themselves contrary to sacco operations where amounts are shared among all members.

“It is like allowing someone to come to your house, cook using your utensils and tell you to move aside as they eat. The most interesting part is neither the commissioner of cooperatives nor Sasra know who this person is,” Marube said.

Social impact members would only vote on resolutions relating to the special fund.

“This simply means that this special class of members only vote in matters concerning them and to the exclusion of the rest of the members. This special group of members shall not attend AGMs as well. That will not be tolerated and the person behind this Bill should form their own sacco and manage it,” Marube said.

The proposed amendment, he said, would distort the principle and spirit of cooperatives, which is non-discrimination.

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