A Bill seeking to strengthen governance of cooperatives and eliminate pyramid schemes disguised as Savings and Credit Cooperatives (Saccos)has been introduced in Parliament.
Sponsored by the Leader of the Majority Party, Kimani Ichung’wah, the Bill seeks to overhaul the regulatory framework for cooperatives, promoting good governance, protecting member savings, and fostering a more competitive sector.
It was read for the first time in the National Assembly on Tuesday, April 9, 2024.
In Clause 19, the Bill introduces a four-tier cooperative structure in Kenya; primary cooperatives, secondary cooperatives, cooperative federations, and apex cooperatives.
It also seeks to establish the office of the commissioner for cooperative development at the national level and the office of the county director for cooperatives in each of Kenya’s 47 counties.
These offices are responsible for overseeing cooperative registration, supervision, and regulation.
Kenyans are set to benefit as the Bill prioritizes member protection by ensuring the security of savings through stricter financial controls and robust oversight mechanisms.
Clause 41, 43, and 44 of the Bill further seeks to eliminate fraudulent schemes disguised as cooperatives, particularly Saccos, by protecting the cooperative identity.
“A person shall not use the word “Cooperative” or any of its derivatives or any other words indicating the transaction of Cooperative business or the equivalent, in the name, description or title under which it transacts business in Kenya or make any representation that the person transacts Cooperative business unless such person is duly registered under this Act,” the Bill reads in part.
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