Voices
By Morris Mwaringa
Sacco leaders have expressed concern over the government’s tendency to exclude them from the “negotiation table” during the reform process for the cooperative movement. They argue that individuals with little or no relevant knowledge are often chosen to participate, leading to a lack of the advocacy necessary to accelerate the development of the movement. This pattern mirrors the behavior of past governments, which have, for decades, prevented the cooperative movement from having its dedicated ministry. Until the current administration, the cooperative movement, which contributes about 35% of Kenya’s GDP, has been integrated into various other ministries, limiting its autonomy and hindering its full economic potential.
The government is expected to unveil a long-awaited cooperative bill in the next month. This bill has been promoted by its government authors as a means to create a more supportive environment for the cooperative movement and establish a level playing field for the SACCO sector. However, SACCO executives nationwide feel that the government has not sufficiently incorporated their expert advice into the reform process.
Eng. Joseph Siror, the National Chairman of Stima DT SACCO, acknowledged the initiatives by politicians now spearheading government roles related to SASRA and the cooperative bill. However, he warned that these officials may inadvertently make poor recommendations. “We should not leave key decisions to those who risk making recommendations that could undermine the future development of the movement. There is much more the cooperative movement can achieve beyond the 35% of GDP it already contributes. This can only be realized by listening to SACCO leaders,” he stated.
Speaking recently in Nairobi, Eng. Siror emphasized that SACCO leaders understand what best serves their members. Therefore, they need to be included in decisions about changes to the movement. “We need to control the narrative. We know what will work best for our members,” he asserted.
George Mutiso, the Nairobi County Chief Officer for Cooperatives, agrees with Eng. Siror. As an officer in the county government, he noted that the cooperative sector significantly contributes to the country’s GDP, yet the expertise of those who manage the movement is often overlooked. He corroborated the concerns of cooperative leaders regarding their exclusion from key decision-making processes, a legacy of past administrations. He advocated for a united front to push for constitutional provisions that would establish the cooperative movement as a de jure ministry, akin to the Finance and Treasury ministry, rather than allowing it to be merged into another ministry. “It is crucial to have a dedicated ministry each time a new government is formed, and this provision should extend to county governments as well,” he stated.
Given the significant contribution of the cooperative movement to the community, Mutiso is convinced that communal equity can only be achieved through this sector. “SACCOs and cooperatives are the true avenues for realistic financial inclusion,” he remarked.
To implement reforms that genuinely serve the community’s best interests, cooperative leaders must take the lead and be fully involved in the process. “We should not only be present at the table but be integral to the reform discussions. SACCO leaders should be included in every aspect of the reform process,” he said.
