The government is pushing for merge of smaller co-operative societies as the number of co-operatives collapsing increases.
A recent data shows that only 9,000 Saccos are active from a total number of 24,000 registered Saccos.
Every year about 1,500 co-operatives are registered but most have remained dormant.
A new bill sponsored by nominated Senator Agnes Zani -the Cooperative Societies (Amendment) Bill, 2020- seeks to compel the Ministry of Industry, Trade, and Cooperatives to tame rogue Saccos.
It intends to strengthen management to promote the development of the cooperative sector and the effective management of Saccos.
Last year, President Uhuru Kenyatta directed the Ministry to fast-track the implementation of National Cooperative Policy and operationalize the proposed Sacco Societies Fraud Investigation Unit within the Sacco Societies Regulatory Authority (Sasra) that will improve management of co-operatives.
Geoffrey Njang’ombe, the acting co-operative commissioner, had last year noted small co-operatives should merge to enjoy the economy of scale.
Covid-19 pandemic has affected many co-operatives countrywide.
Sacco Societies Regulatory Authority has also noted the need to merge small saccos.
