The collapse of Savings and Credit Cooperative Organizations (SACCOs) in Embu County has been primarily attributed to poor management, lack of accountability, and insufficient democratic practices.
Deputy Governor Kinyua Mugo reported that out of 315 registered SACCOs in the region, 126 are currently dormant and on the verge of collapse due to mismanagement issues. Conflicts between management boards and fiscal indiscipline are significantly damaging many SACCOs, threatening their stability and reputation among potential new members.
“Many SACCOs have failed due to a lack of accountability and transparency in managing members’ investments,” Mugo stated.
In a recent address to cooperative leaders, he emphasized the absence of democracy in leadership changes, pointing out that some SACCO leaders have held onto their positions for decades. To address this, he proposed the implementation of a three-year term limit for leaders to introduce fresh ideas and perspectives.
“Allowing democracy to flourish within SACCOs is crucial. The continued hold of officials beyond their term limits leads to conflicts of interest,” he added.
Mugo reaffirmed the commitment of the county government to revitalize dormant SACCOs, recognizing their vital role in wealth generation and job creation. He noted that SACCOs have significantly contributed to the county’s economic growth by offering low-interest loans with flexible repayment options, unlike traditional commercial banks.
