The government is planning to create a new law to protect investors in cooperatives. The aim is to secure the savings and investments of clients from embezzlement. James Gakuya, the Chairman Parliamentary Departmental Committee for Trade, Industry and Cooperatives, stated that the current laws have weaknesses that do not adequately protect investors.
The new bill is intended to address these challenges, especially in safeguarding the investments of retirees and other clients, as well as promoting professionalism and integrity in the management of cooperatives.
During a public hearing of the Cooperatives Bill 2024 at the Machakos Social Hall, Gakuya emphasized that the new law is also aimed at restoring trust in cooperatives and Saccos. He mentioned that many clients, including those in the diaspora, have lost their investments in land buying companies due to mismanagement and embezzlement. Gakuya also stressed the importance of encouraging Kenyans to invest in Saccos.
Kamene Kasimbi, the Machakos Women Representative, warned the directors of cooperatives and Saccos that they would be held accountable in case of any embezzlement. She also highlighted the significance of gender balance in the management of cooperatives.
Furthermore, the government is optimistic that the Cooperatives Bill will be passed into law this year after resolving key contentious issues. Patrick Kilemi, the Principal Secretary for Cooperatives, stated that after a meeting with the Council of Governors (CoG), they agreed on the delineation of duties between the national and county governments. This includes issues concerning registration, inspection, and agency notices related to the cooperatives movement and devolution.
The bill, which has been under discussion for about 15 years, aims for a complete transformation of the cooperative sector, including SACCOs, with the goal of promoting development through the cooperatives movement.
