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Ministry warns Saccos against swindling members

Jackline Nziza @PeopleDailyKe

Savings and credit co-operative organisations (saccos) face deregistration by the government if caught swindling their members to mint “unfair” millions, a senior official has said. The Industry, Trade and Co-operatives ministry official spelt out tough disciplinary actions, warning the organisations that the ministry would soon crack the whip and deregister rogue societies.

Commissioner for Co-operative Development Mary Mungai said those found fleecing members would not be spared. “We are trying to clean up saccos that are not pegged on co-operative principles. There are people who come and register and then go out to solicit money from members without proper structures. We are actually deregistering them and weeding them out,” she said.

Mungai made the remarks while delivering a speech on behalf of Cabinet Secretary Peter Munya (pictured) during the second Stima Sacco Delegates Congress at a Mombasa hotel.

She stressed the need for Saccos to have proper governance structures to ensure sustainability and transparency. She said this would help in ensuring the success of the co-operative movement and help the government in achieving the Big Four agenda.

Quoting a World Bank report, Mungai said that 80 per cent of members who have acquired affordable housing have actualised their dream through the co-operative movement. Stima Sacco chief executive Chris Useki said that Kenyans should learn more about co-operative societies to maximise their financial gains.

“We have co-operatives that are doing fantastic job in the private sector but I urge members of the society to be very careful before joining any Sacco,” he said Useki.

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