By KPC Reporter
The government is moving swiftly to reform the cooperative movement, aiming to safeguard members’ deposits and strengthen governance, officials have said.
Speaking during the Harambee Sacco Annual Delegates Meeting in Nairobi, Cooperatives PS Kiburi Kilemi highlighted several laws and policy proposals at parliamentary and ministerial levels designed to put the sector on the right trajectory.
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PS Kilemi cited past challenges, including cases involving KUSSCO and METROPOLITAN, which prompted stricter monitoring of cooperative leadership.
He emphasized auditing trips undertaken by Sacco boards, noting that some societies misuse member funds on lavish outings and travel deals.
He directed top-tier societies to adopt rigorous auditing standards and engage reputable institutions to protect members’ interests.
Backing the PS, Cooperatives Commissioner David Obonyo warned against falsifying accounts to inflate dividends, stressing the need for reasonable growth trajectories aligned with membership interests.
Societies were urged to enhance peer-to-peer learning rather than rely on expensive international benchmarking trips and to operate within their means, avoiding unsustainable borrowing.
Harambee Sacco Leads by Example
Amid these directives, Harambee Sacco has been praised as a model for growth and governance.
Chairman Macloud Malonza reported a membership increase of 7,000 over the past year, assets rising from KES 37 billion to KES 42.2 billion, and a KES 2.8 billion dividend payout—9.1% compared to 9% the previous year.
Revenue also grew to KES 7 billion, up from KES 6 billion in 2024.
The government announced plans to reward Saccos that prioritize low-interest customer loans, with incentives starting in October, signaling a broader shift toward responsible, member-focused operations across the sector.
