Sacco members have equal rights under the first and second co-operative principles.
For this reason, the Government has advised Savings and Credit Co-operative Societies (Saccos) not to prevent their members from seeking elective positions on their boards based on their original bond.
Commissioner for Co-operative Development David Obonyo stated that the practice is outdated, and many Saccos have opened the common bond, making it possible for anyone to join. Previously, Saccos recruited members based on their economic activities, with employer-based Saccos recruiting mostly civil servants, while farmers formed agriculture-based ones.
However, the opening of the common bond has made it possible for Kenyans to join any Sacco, regardless of their economic activity. Mr Obonyo, speaking recently, emphasized the need to relook at the practice of barring some members from seeking elective positions, stating that it goes against co-operative principles and defeats the logic of opening the common bond.
The first co-operative principle is voluntary and open membership, which states co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership without gender, social, racial, political, or religious discrimination.
The second principle is democratic member control, which implies Saccos as co-operative entities are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. Primary co-operatives members have equal voting rights (one member, one vote), and co-operatives at other levels are also organised in a democratic manner.
The Government has urged Savings and Credit Co-operative Societies (Saccos) to refrain from bar members outside their original bond from seeking elective positions on their boards.
Saccos must embrace democracy in board elections as selective board elections go against co-operative principles
There have been complaints that some co-operative societies prevent members outside their primary employer from vying for positions. According to Mr Obonyo, things have changed, and a Sacco that has allowed other members to join must treat them equally. The majority of Sacco’s bylaws stipulate that only class A members can serve on the board. Employer-based Saccos have clustered members into various classes.
There is fear that some members join Saccos with hidden agendas, and allowing them in leadership may cause trouble. The Co-operatives Bill (2021) proposed the introduction of independent directors to sit on the Boards of Saccos, which was opposed.
“You cannot allow people to join a Sacco, then prevent them from accessing leadership positions especially if they meet all the qualifications,” said Mr Obonyo.
