CS Oparanya appoints team to review SACCO Societies Act, appoints new KUSCCO Board
In a statement issued on Wednesday, Oparanya said the experts would be responsible for reviewing the legislation and proposing amendments to enhance the SACCO sector’s resilience.
Cooperatives Cabinet Secretary Wycliffe Oparanya has appointed a five-member team of experts to review the SACCO Societies Act, 2008, in a move aimed at strengthening financial stability and governance within SACCOs.
The newly formed committee has been tasked with aligning the Act with emerging trends and challenges in the sector.
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In a statement issued on Wednesday, Oparanya said the experts would be responsible for reviewing the legislation and proposing amendments to enhance the SACCO sector’s resilience.
He noted that the committee’s objectives include establishing a Central Liquidity Facility for SACCOs, creating a SACCO Deposit Guarantee Fund to safeguard members’ deposits, and setting up a shared services legal and administrative framework.
The appointed members include: Marlene Shiels, CEO of Capital Credit Union (Scotland), who will serve as Chairperson, Maurice Smith, Advocate of the African American Credit Union Coalition (AACUC) and member of the United States Supreme Court Bar, Collins Harrison Odhiambo, Advocate of the High Court of Kenya and expert in Constitutional, Administrative, and Human Rights Law, Gamaliel Hassan, CEO of Stima DT SACCO, and Nelson Kuria, Group Chairperson of CIC Insurance Group.
Supporting the committee will be technical staff, including Morris Mworia Muriungi and John B. Ong’atta.
The team has been given three months to complete its review and submit recommendations.
“The Government of Kenya remains committed to supporting reforms that enhance the resilience and sustainability of the SACCO sector,” Oparanya said, congratulating the newly appointed experts.
New KUSCCO Board
In addition to the committee’s appointment, Oparanya announced a new Board of Directors for the Kenya Union of Savings and Credit Cooperatives (KUSCCO).
The board will serve a two-year term and is tasked with restructuring the organisation for efficiency, recovering assets, and preparing KUSCCO for its transition into a Federation.
The board includes: David Mategwa (National Chairperson, Kenya National Police DT SACCO), Jennifer Mburu (National Vice Chairperson, Mhasibu SACCO), Robert Njue (Board Director, WINAS SACCO), Osmane Khatolwa (Board Director, Stima DT SACCO) and John Ziro (Board Director, Imarika DT SACCO).
Others are Philip Rirei (Board Director, Noble SACCO), Michael Muriithi (Board Director, Unaitas SACCO), Priscilla Maranga (Representative, Office of the Commissioner), Brenda Obondo (Board Director, KMA SACCO), Mary Kweyu (Board Director, Invest and Grow SACCO), and Charles Kioko (Board Director, GDC SACCO).
Oparanya commended the previous KUSCCO Board for its work, noting achievements such as implementing a recovery strategy and completing statutory audits.
He emphasised that the appointments are crucial for strengthening the SACCO movement and ensuring improved service delivery for all SACCOs in Kenya.
The new board’s appointment follows a forensic audit by PwC, which uncovered serious financial irregularities at KUSCCO.
The audit revealed: fraudulent bookkeeping, large-scale theft by executives, bribery and unauthorised bank withdrawals, and conflicts of interest in awarding contracts to companies owned by top managers.
Financial records had been manipulated to conceal these activities, creating a false impression of profitability.
The audit disclosed that Sh13.3 billion had been lost, leaving KUSCCO insolvent by Sh12.5 billion. The organisation had collected Sh24.8 billion in deposits from 247 SACCOs, with the funds now at risk.
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