The Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development, Wycliff Ambetsa Oparanya, has urged SACCOs to invest in robust digital infrastructure, continuous staff training, and effective security protocols to curb the rising cases of cybersecurity threats.
Speaking at the Pride Inn Paradise Resort, Mombasa, during the 9th annual leaders themed “Defying Economic Challenges, Shaping Generations, and Building a Cooperative Future” Summit, Oparanya noted that the world is now in an era where a single cybersecurity breach can potentially compromise the financial integrity of an entire SACCO.
“In an era of unprecedented economic volatility, our SACCOs represent more than financial institutions; they are pillars of economic inclusion, social transformation, and inclusive community development as per the Bottom-up Economic Transformation Agenda. We must guard and protect them,” Oparanya reiterated.
He added that the SACCO sector is a significant player in the financial sector, holding over Sh1 trillion in member deposits.
“As you know, our government takes financial impropriety extremely seriously. We have already involved the relevant agencies to investigate these matters and help recover members’ funds comprehensively,” Oparanya said.
Oparanya highlighted that the Cooperatives Bill 2024 that has been presented in Parliament for the third reading is a game-changer for the cooperative movement. The legal provisions therein provide adequate safeguards to protect member deposits and ensure SACCOs practice good governance.
“This law recognises emerging issues that ensure the posterity of the cooperative movement. Let us all prioritise transparency and ethical leadership while investing in technological security and robust audit mechanisms,” Oparanya concluded.
The Chairman of KUSCCO, David Mategwa, highlighted that KUSCCO is under the leadership of an Interim Board supported by a Technical Committee appointed in May 2024 to implement a recovery strategy.
He noted that among the key strategies being undertaken is the registration of a new Secondary Co-operative Society to take over the operations of the Central Finance Fund. This Secondary Co-operative will be fully licensed and regulated by SASRA.
“I urge each of us to seize this opportunity to strengthen our governance structures, invest in digital transformation, and forge strategic partnerships that will enhance our sector’s competitiveness. Together, let us transform the SACCO sector into an even stronger force for economic empowerment, ensuring that the fruits of our efforts are felt across generations,” Mategwa said.
The Group’s Managing Director, Arnold Munene, reiterated that the sector continues to serve as the backbone of Kenya’s Cooperative movement, demonstrating remarkable resilience and growth.
“According to the SACCO Supervision Report 2023, our regulated SACCOs have achieved significant improvements in financial performance. Our sector’s total assets now stand at an impressive Sh971.96 billion, accounting for 6.43% of Kenya’s nominal Gross Domestic Product. These financial co-operatives remain crucial to Kenya’s economic development. In 2023 alone, we disbursed Sh460 billion in loans across key sectors, including land and housing, education, agriculture, and Micro, Small, and Medium Enterprises. Our alignment with the Government’s Bottom-up Economic Transformation Agenda underscores our pivotal role in supporting economic progress at all levels,” Munene highlighted.
He shared that the growth of gross loans has increased by 11.5% to Sh758.57 billion, while membership grew by 6.57% to 6.84 million. He added that it has also made a significant impact on employment, providing jobs for 11,883 individuals.
“We find ourselves in an era marked by unprecedented economic challenges: rising inflation, fluctuating interest rates, and a rapidly changing financial landscape. However, I firmly believe that within these challenges lie immense opportunities for growth, innovation, and transformation,” Munene concluded.
By Fatma Said