Hon. Wycliffe Oparanya, the Cabinet Secretary for Micro, Small, and Medium Enterprises (MSMEs), has issued a strong warning to SACCOs about a troubling trend. He noted that influential individuals are pressuring some SACCOs to grant loans without requiring security. Oparanya cautioned against allowing these powerful individuals, whom he referred to as “Big Men,” to obtain large loans without sufficient collateral.
“Imagine a SACCO lending KSh 100 million to a ‘Big Man’ without any security. What happens if that individual suddenly passes away or faces financial issues?” He asked.
Oparanya urged SACCOs to implement strict governance measures, adhere to sound lending policies, and safeguard member deposits. “The government is committed to protecting small savers,” he stated, emphasizing the need for vigilance to ensure the integrity of Kenya’s cooperative sector.
