Sacco chairpersons will be prohibited from sitting in any board committee in line with the new corporate governance practice since the chair will be receiving reports from the committees as he presides over the whole board. However, according to Mr Njuguna, the chair may be co-opted in committees when input is needed.
In another drastic change for the sub-sector, Saccos will now have to make disclosure of allowances for directors in the annual financial statements. “The recommendation is retained as a best practice for DTs to adopt though it is included in the framework for NWDTs. The aim is to assure members on prudent utilization of the budget,” said Mr Njuguna.
Saccos will also seek approval from Authority when recruiting senior management staff, as government moves to strengthen governance, secure members’ funds and build public trust and confidence in the sector. The Authority called on Saccos management to enhance their cyber surveillance by conducting system audits and penetration audits regularly.
