The Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development, Wycliffe Oparanya, has called for reforms in Kenya’s cooperative sector, focusing on improving member satisfaction and corporate governance.

Speaking during a press briefing with the Kenya National Police DT SACCO, Oparanya said that the sector has mobilized over Sh1.2 trillion in savings, disbursed Sh1 billion in loans, and holds an asset base of Sh1.7 billion.

He pointed out that despite this success, many SACCOs still struggle due to weak governance structures.

To address these challenges, Oparanya announced plans for a new cooperatives bill and amendments to existing legislation to strengthen the regulatory framework. He emphasized the need for SACCOs to remain focused on their members' needs, describing them as key drivers of economic and social development.

"SACCOs have the potential to be powerful drivers of economic growth and social development in Kenya. By strengthening their governance and providing them with the necessary tools and support, we can unleash their full potential," said Oparanya.

Kenya National Police DT SACCO CEO Solomon Atsiaya echoed these remarks, stressing that SACCOs must innovate and improve services to stay relevant and meet their members' expectations.

"SACCOs are vital pillars of our economy, but their success depends on their ability to remain relevant and responsive to the needs of their members."

Oparanya also outlined the government's goal of enabling SACCOs to self-regulate, with government oversight limited to protecting depositors' funds.

He expressed a commitment to revitalising the Kenya Union of Savings and Credit Cooperatives (KUSCCO) and exploring funding options to support its operations.

The CS has continuously decried poor management practices in the majority of savings and credit cooperatives in the country.

Speaking at St Michaels Primary in Nairobi during a meeting of LOMPASAGO Sacco, the CS said it is the responsibility of sacco boards to ensure members' contributions are safe.

Oparanya said high levels of mismanagement is threatening the existence of some saccos.

“I have been in office for only three weeks but one thing has become clear; the major problem facing our saccos is poor governance. There is a lot of mismanagement in our saccos,” he regretted.