GOVERNMENT HALTS SACCO INVESTMENT IN NON-CORE VENTURES AMID REGULATORY CONCERNS

The government has halted all savings and credit cooperative societies (SACCOs) from investing in non-core businesses until proper regulations and oversight mechanisms are established. While addressing the Senate, Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises Development, Wycliffe Oparanya, stated that audits have revealed that investments in non-core ventures are a major factor contributing to the financial instability of the sector.

Oparanya also noted that the Sacco Societies Regulatory Authority (SASRA) is facing difficulties in regulating SACCOs due to financial constraints, with a significant portion of the levies it collects being redirected to the National Treasury. He urged the Senate to pass the Sacco Bill, which seeks to criminalize delays by employers in remitting deductions to SACCOs.

Additionally, Oparanya dismissed calls for government bailouts of struggling SACCOs, instead recommending that they liquidate their assets to repay members and remain operational.