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The leadership of the Sacco Societies Regulatory Authority (SASRA), led by Chairman Hon. Jack Ranguma, held a crucial meeting yesterday with the Cabinet Secretary for the Ministry of Co-operatives and MSMEs, Dr. Wycliffe Oparanya. The meeting focused on the current state of the SACCO industry and pressing policy issues affecting the sector. Also in attendance were PS Kilemi and David Obonyo, the Commissioner for Cooperative Development.
During the session, SASRA provided a detailed update on the financial health of the SACCO industry, highlighting its solid performance. As of July 2024, the industry has grown its assets to an impressive Ksh. 1 trillion, reinforcing its position as a key player in Kenya’s financial landscape. The upcoming launch of the Annual Sacco Supervision Report, which will provide deeper insights into the sector’s performance, was also previewed.
A major point of concern raised by SASRA was the need for the immediate operationalization of the Deposit Guarantee Fund. This fund is viewed as an essential safety net for depositors, providing a buffer in cases where a SACCO faces financial collapse. The urgency of this measure was emphasized, particularly in light of the ongoing efforts to stabilize a few SACCOs currently experiencing financial difficulties.
The SASRA team also briefed CS Oparanya on the steps being taken within the existing legal framework to ensure the stability of the SACCOs facing challenges. In addition, they discussed proposed amendments to the Sacco Societies Act, 2008, aimed at further entrenching good governance within the sector. These amendments are intended to address the emerging challenges posed by the sector’s rapid growth, ensuring that member deposits are adequately protected from mismanagement.
The meeting underscored the importance of enhancing the regulatory framework to support the sustained growth of the SACCO industry while safeguarding the interests of its members. CS Oparanya reiterated the government’s commitment to supporting the cooperative movement and ensuring that SACCOs remain a reliable pillar of Kenya’s financial system.
The discussion also set the stage for further engagements as the Ministry, SASRA, and other stakeholders work together to build a resilient and secure SACCO industry that can continue to thrive and contribute to Kenya’s economic development.
