The Cabinet Secretary for the Ministry of Cooperatives and Micro, Small, and Medium Enterprises (MSMEs), Wycliffe Oparanya, announced that the government is set to implement measures aimed at addressing financial mismanagement within the country’s Savings and Credit Cooperative Organizations (SACCOs).
During his address at the 10th Annual SACCO Leaders Convention at PrideInn Mombasa, Oparanya said that the government is committed to enhancing transparency and accountability in this vital sector. He warned that individuals found guilty of misappropriating funds will face severe legal repercussions, emphasizing the government’s dedication to safeguarding the investments of SACCO members.
Oparanya recently submitted a forensic audit report on the Kenya Union of Savings and Credit Cooperatives (KUSCCO) to the Inspector General of Police, urging immediate investigations into allegations of financial irregularities. “Moving forward, we will take similar action against any cooperative leaders who misappropriate or mismanage funds—this will no longer be tolerated,” he cautioned.
The convention gathered over 800 leaders representing Kenya’s 13,000 SACCOs.
Oparanya underscored that the cooperative movement is a critical component of the Kenyan financial landscape and plays a key role in economic transformation. He stated that SACCOs manage over Sh1 trillion in deposits, highlighting the necessity of balancing growth and sustainability for long-term service to members.
The CS also called for SACCOs to leverage their unique position to promote financial inclusion by extending their services to marginalized communities. Unlike many financial institutions that cater primarily to urban areas, SACCOs have successfully reached deeper into rural areas, providing essential financial services to those who may otherwise lack access.
Oparanya urged the need for cooperatives to expand their membership base, fortify their networks, and enhance their competitiveness. He noted that KUSCCO has been pivotal in advocating for the SACCO sector over the past five decades and announced an impending restructuring of the union to reinforce its effectiveness in fulfilling its mandate.
He called for strong governance, strict internal controls, and sound financial management, stating that transparency, accountability, and adherence to good governance must be the foundation of the cooperative movement. “Let us recommit to ethical leadership, financial prudence, and sustainable growth,” he urged.
KUSCCO’s Interim Board National Chairman David Mategwa echoed the need for a new strategic direction in light of recent financial mismanagement revelations. He reassured stakeholders that his team is committed to swiftly addressing the insights provided by the forensic audit. Mategwa confirmed that the report has been shared with pertinent authorities, including the Ethics and Anti-Corruption Commission, the Office of the Director of Public Prosecutions, the Assets Recovery Agency, and the Directorate of Criminal Investigations.
“The comprehensive forensic audit has offered invaluable insights into our operations. We view these findings as opportunities for growth and enhanced efficiency,” Mategwa stated.
