The Government has appointed a team of five experts to review the SACCO Societies Act of 2008 and recommend updates to address emerging trends and challenges in the sector. The team, with a term of three months, was appointed by the Cabinet Secretary for Co-operatives and MSMEs Development and is led by Ms. Marlene Shiels, Chief Executive Officer of Capital Credit Union (Scotland). Other members include Advocate Maurice Smith from the African American Credit Union Coalition (AACUC) and a member of the United States Supreme Court Bar, Odhiambo Collins Harrison, an expert in Constitutional, Administrative, and Human Rights law, Dr. Gamaliel Hassan, Chief Executive Officer of Stima DT SACCO, and Dr. Nelson Kuria, Group Chairman of the Board at CIC Group.
A technical team comprised of Morris Mworia Muriungi and John B. Ongátta supports this committee of experts. This five-member committee is tasked with revising the SACCO Act to facilitate the establishment of a Central Liquidity Facility for all SACCOs in Kenya, thereby enhancing their liquidity positions.
Furthermore, the team will propose amendments to the SACCO law to create a SACCO Deposit Guarantee Fund, which would serve as a safety net ensuring the protection of members’ funds in the event a SACCO collapses and is liquidated. Following recent cabinet approvals, the experts will also develop the legal instruments necessary for establishing a shared services platform, a move expected to benefit smaller SACCOs.
This appointment comes at a time when the Co-op Bill 2024 has been published and reached the Senate for debate and approval.
If passed into law, the Co-operative Societies (Amendment) Bill, 2023 (Sen. Bills No. 53 of 2023) aims to amend the Co-operative Societies Act, No. 12 of 1997, to align it with the Constitution of Kenya, 2010. This amendment will define the functions of the National and County Governments in relation to the governance of co-operative societies, creating a more conducive environment for co-operatives to operate, thus contributing to the economy and social fabric by enhancing the skills and capabilities of co-operative members and leaders while fostering innovation and competitiveness in the sector.
