The Commissioner for Co-operative Development, David Obonyo, has issued a stern warning to Sacco leaders against taking internal disputes to court, urging the industry to embrace dialogue to protect members’ interests and the movement’s reputation.
Speaking during the 11th Annual Sacco Leaders Convention in Mombasa—an event organized by the Kenya Union of Savings and Credit Co-operatives (KUSCCO)—Obonyo expressed concern over the rising trend of Saccos litigating against one another.
“The cooperative movement is a family,” Commissioner Obonyo told the Sacco leaders. “In any family, disagreements will arise, but a dispute should not mean the end of a relationship. I want us to embrace dialogue to settle our differences amicably rather than rushing to court.”
The Commissioner noted that legal battles are not only expensive and time-consuming but also counterproductive. He cited alarming instances where Saccos have attempted to auction the assets of their peers.
“Honestly, what is going wrong? Why can’t we use the administrative mechanisms established within the Ministry and the industry?” he questioned. “One Sacco spends money to file a case, and another spends money to defend it. At the end of the day, the person losing is the member.”
Obonyo warned that “washing dirty linen in public” through the media and the courts damages the core of the industry, potentially scaring away prospective members who may perceive the sector as chaotic.
