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CS Adan Mohamed calls for tighter controls for SACCOs

CS Adan Mohamed calls for tighter controls for SACCOs
SACCOs will have to strengthen their governance structures if they are to maintain their growth trajectory, Industrialisation Cabinet Secretary Adan Mohamed has said. He said due to the unique business model of SACCOs, they must rethink about the issue of governance to guard against theft of members’ deposits. Currently, SACCOs hold over Sh600 billion of customer deposits.
“The issue of good corporate governance is one that will determine the success or failure of the Sacco movement into the future. We should not relent and leave it to chance in ensuring that the level of governance and audits are at the highest possible level,” said the CS. He spoke in Nairobi yesterday during the opening of the second Sacco Leaders Convention organised by the Kenya Union of Savings and Credit Co-operatives (KUSCCO).
Mr Mohamed challenged members to elect officials who favour strong organisational structures. Better differentiation of roles of directors, shareholders and independent officers such as auditors, the CS said, is key if members are to continue entrusting SACCOs with deposits. KUSCCO Managing Director George Ototo said members of the umbrella body effecting taking continuous improvement in their operations to uplift levels of integrity. “We are also training the leadership on how to manage Saccos more prudently and with a business mind,” said Mr Ototo. The co-operative movement has been undergoing changes in legislation, including amending the Banking Act, which allowed SACCOs to access information on customers’ credit rating. CS Mohamed urged SACCOs to adopt better technologies to guard against losses.

Source:  www.standardmedia.co.ke

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