The country's development through socio-economic gains driven by duly registered Saving and Credit Cooperatives (Saccos) must be acknowledged.
Deposit and non-taking Saccos are unique corporate entities being member-owned and driven. This drive by members in Saccos must be oriented towards the eight universal principles as developed by the International Cooperative Alliance (ILA).
The principles include; open and voluntary membership, democratic membership control, member economic participation, autonomy and interdependence, education, training and information, cooperation among co-operatives and concern for community.
According to a regulatory report by Sacco Societies Regulatory Authority (SASRA), 2019, Deposit taking alone, had more than 10 million in savings and controlled over 500 billion in terms of asset portfolio.
The sector is also a source of employment with 500,000 people directly employed. This contributes to over 5 per cent of Kenya’s Gross Domestic Product.
Governance organs which are member-elected are central in policy direction and sustenance of the sector. They are anchored on principles, financial posting and growth.
Saccos have commendable innovation strategies that have been developed through policy proposals, technological adoption and rigorous empowerment programmes.
Individual Saccos, have demonstrable reformative business processes that have come in handy in serving the members and projecting the sector in positive cast from 'our country to the world'.
The nature of open and cordial engagement between the various committees domiciled in the governing organs and the members has seen responsive products, solutions and culture developed. This has made it feasible and easier to run the different Societies.
These structures enable Saccos to seamlessly comply with regulatory requirements needed by the relevant ministry.
Some of the cooperative initiatives and solutions have been modelled on other corporate entities.
Education and engagement models espoused by some cooperatives are emulated by many cooperatives even as some struggle to instate appropriate corporate culture.
The Sacco subsector's rapid growth has however faced challenges of fraud, non-remittances and external competition especially from unregulated lenders.
The current economic turmoil has led members to default on their dues while others are put off balance by their investments plans.
Robust risk models are the solutions within the armpit of the governance organs of these Saccos in line with regulatory guidance.
The progress attained by these governance organs in moving Saccos from the perception that Sacco are “quasi- corporates” run in a village-like mentality to what we have now is to be celebrated.
The sector is a citadel in many respects and revered by most countries across Africa and beyond courtesy of a collegiate effort from all the players.
Mutethia wa Mberia
The writer is Corporate Communication practitioner and current Secretary of Comhigh Sacco Ltd.
