Hon.Wycliffe Oparanya, the new Cabinet Secretary for Co-operatives and MSMEs Development, has wasted no time in getting started after taking over from Simon Chelugui.
In contrast to his predecessor, who took charge of a newly established Ministry that had been downgraded to a state department with major budget cuts and limited functions, Hon Oparanya now faces a substantial workload and heightened expectations for success.
The Ministry of Co-operatives has high expectations from millions of co-operators and MSMEs that face numerous challenges.
Mr Oparanya is anticipated to drive the implementation of the Co-operative Bill 2024, which is expected to revitalize the sector yet its implementation has dragged for years. His in-tray is full.
The Co-operative sector players will be keenly watching on how he navigates to overhaul the old Co-operatives law, Cap490 with a new one, a process that was already ongoing.
Already, a sessional paper has been drawn that will trigger a repeal of the old law. A proposed new Co-operatives Bill 2024 has been published and is subjected to public participation before it reaches the floor of Parliament for debate and approval.
The Co-operative Societies Bill 2024 aims to amend the Co-operative Societies Act, No. 12 of 1997 in order to align it with the Constitution of Kenya, 2010 by setting out the functions of the National Government and the county governments in relation to governance of co-operative societies.
It will ensure that the legal framework governing co-operatives reflects the current constitutional provisions and promotes effective governance and development of co-operative societies.
This will create a conducive environment for co-operatives to conduct their businesses and contribute to the economy and the social fabric by strengthening the capacity and skills of co-operative members and leaders, and offering innovation and competitiveness in the sector.
Mr Oparanya is also expected to speed up the operationalization of the Deposit Guarantee Fund, a facility that will act as a safety net for depositors when a Sacco collapses. As matters stand, members of collapsed Saccos are exposed to the process of liquidating affected societies or compensating those who lose their savings and are held hostage by a long and endless litigation process through the courts.
Other emerging policy issues that CS Oparanya will have to grapple with and resolve include strengthening the existing legal framework to stabilize the few Saccos experiencing financial difficulties in addition to amendments of the Sacco Societies Act, 2008, to further entrench good governance within the Sacco sector.
It is apparent even with growth and development of the Sacco industry, now estimated to hold assets worth KSh 1 trillion, there is still an urgent need to enhance the regulatory framework to address emerging challenges for a sustained growth.
At present, members of Saccos have no adequate protection on the deposits from mismanagement by dishonest managers entrusted with leadership for such a critical industry in Kenyan economy.
CS Oparanya will also have to fix the problem of employers failing to remit deductions made on their employees to their respective Saccos.
He has to be in the driving seat as he leads in consultations with the other stakeholders and policymakers to have a re-look at the efficacy of the prevailing legal and operational framework of the concept of remittances by employer-institutions of deductions made and due to Saccos.
This is more so with the revelation that the greatest proportion of non-remitted funds, due to these financial entities, are owed by the state and state-related agencies and institutions.
“Saccos play a crucial role in our economy, and it’s important that we align the industry with global best practices. I recently met with a team from SASRA, and we discussed the development of a framework for shared services to enhance efficiency and protect member deposits,” said the Minister when he recently met a team from SASRA.
Acknowledging the existing legal gaps, Mr. Oparanya committed to expediting legislative measures, including the Co-operative Bill pending in Parliament and implementing the Deposit Guarantee Fund to ensure the safety of deposits.
“We also require mechanisms for real-time liquidity monitoring, akin to the approach taken by the CBK, to safeguard member deposits from shadow financial practices,” he stated.
The Cabinet Secretary has expressed interest in addressing the challenges facing the struggling coffee sector. During a meeting with the Kenya Planters Co-operative Unions (KPCU) board members, he emphasized the government’s dedication to increasing local coffee consumption, which currently stands at only 4%. To achieve this goal, he said the government plans to implement new strategies and explore diversification of coffee products.
“We intend to collaborate with Universities and revive the Coffee Research Institute, which will foster research and innovation in the coffee industry,” said Mr Opranya.
The Cabinet Secretary will also lead the country in preparations to host the 24th Savings and Credit Co-operatives Associations (SACCA) Congress. The event will bring together over 2,000 cooperators from 42 countries across six continents. Given his illustrious career in the private and public sectors, cooperators are eagerly anticipating his performance, hoping that he will succeed where others have failed. He previously served as the minister for planning in the grand coalition government from 2008 to 2012.
Mr Oparanya concluded his tenure as Kakamega governor in 2022, having served two terms as per the Constitution. He also chaired the Council of Governors from 2018 to 2021.
Mr Oparanya, a Certified Public Accountant (CPA) K, has had an esteemed career in accounting and finance, amassing over 23 years of experience. He has worked for various companies, including Ernest & Young, where he held the position of Senior Audit Manager from 1980 to 1995. Additionally, he holds a PhD in Economics from the University of Dar es Salaam in Tanzania.
In 1995, he joined Kenya Aerotech Co. Limited, where he served as the Secretary to the Board and later as Group Finance Controller.
Born in Butere in 1956, the 68-year-old Oparanya attended Mabole Primary School before proceeding to Butere Boys High School for his O-levels. He later attended Kisii High School for his A-levels. Oparanya pursued his Undergraduate degree, Bachelor of Commerce (Accounting), at the University of Nairobi from 1977 to 1980. He returned to the same institution for his Masters in Business Administration (Finance) from 1999 to 2000.
He joins a notable list of statesmen who have headed the co-operative docket. Before Hon Chelugui’s appointment by President William Ruto, the last substantive Minister for Co-operative Development was Joseph Nyagah in 2012 during the grand coalition government. The Ministry of Co-operatives was initially established in 1966 alongside social services and was first led by the late Ronald Ngala under President Jomo Kenyatta’s administration. Afterward, other Cabinet Ministers included Kamwithi Munyi, Peter Njeru Ndwiga, Nyagah, and Peter Munya. The Ministry was later downsized to a state department under President Uhuru Kenyatta’s administration.
