At the recent Kenya Teachers SACCO Association (KETSA) 14th annual conference in Nairobi, a distinguished panel of SACCO leaders, including the Director of Cooperatives in Mombasa, Mr Nelson Nyoro; Imarika SACCO chairman, Mr. John Ziro; Trans Nation SACCO CEO, Mr. Luncham Mugambi; and Mwalimu National SACCO chairman, Mr. Joel Gachari, presented a compelling case for adopting delegate systems across Kenya’s SACCO movement.
Proponents argue that this model strengthens governance, fosters transparency, and scales decision-making to match the growth of membership.
As SACCOs expand their reach, traditional Annual General Meetings (AGMs) become increasingly costly and inefficient. In response, Cooperatives Cabinet Secretary Wycliffe Oparanya has mandated that SACCOs with over 10,000 members implement delegate systems, using up to 500 delegates to represent broader membership in decision-making forums. This initiative aims to enhance affordability, equity, and representation for Special Interest Groups (SIGs), ensuring a balanced geographic, age, gender, and disability representation within SACCO governance.
“Change starts with the delegates. Their actions and attitudes shape the direction of the SACCO, as they play a mediating role, translating member needs from the grassroots into strategic actions at the board level. Through education and continuous engagement, delegates can uplift member participation and develop solutions that resonate with all SACCO stakeholders,” said Mr. Nyoro.
Kenya’s SACCO regulators and government also support this evolution. CS Oparanya’s directive makes delegate systems compulsory for larger SACCOs. Additionally, the SACCO Societies Regulatory Authority (SASRA) is advocating for member-led oversight. The inclusive nature of these new advancements addresses several questions raised at SACCO ADMs, such as loan portfolio performance, technology adoption, and cybersecurity measures. Delegates are better positioned to follow up regionally, educate members, and ensure the consistent application of board decisions. This promotes efficiency and trust, helping to prevent mismanagement, fraud, and member disengagement.
By professionalizing oversight and decentralizing representation, the delegate system empowers SACCOs to enhance democratic legitimacy through balanced, elected local representation. It also strengthens financial security by fostering vigilant oversight and encouraging member input, thus building trust and confidence through transparency and feedback loops.
As Kenya’s SACCO sector continues to evolve, the delegate model may serve as its backbone by fostering accountability, participation, and innovation at scale, further increasing member trust and confidence through transparency and effective feedback mechanisms.
The adoption of delegate systems in Kenyan SACCOs aligns governance with growth. Supported by regulators, the government, and thoughtful leaders, this model is not just a policy shift; it’s a roadmap to deeper democracy, financial security, and member empowerment within the SACCO movement.
However, a segment of cooperative stakeholders has expressed opposition to the directive requiring large cooperatives to adopt the delegate system. In a letter to the Ministry of Cooperatives and MSME Development, the Council of Governors stated that local cooperatives should be allowed to make their own decisions.
“We do not want the national government dictating how cooperatives should operate. The function of cooperatives is devolved, and such a significant decision should be made in consultation with counties and cooperatives,” said Nyeri Governor Mutahi Kahiga during the county Ushirika Celebrations. He mentioned that the Council of Governors has written to the Ministry, urging them to reconsider the directive.
Nyeri Ushirika Council Chairman Newton Nderitu echoed these sentiments, emphasizing that cooperative members should have the autonomy to decide for themselves.
