Oparanya eyes term limits for cooperative officials to curb fraud
By Lucy Mumbi |
Oparanya assured that he would implement term limits for cooperative officials to prevent extended tenures.
Cooperatives and MSMEs Cabinet Secretary nominee Wycliffe Oparanya has promised to introduce term limits for officials in cooperative organisations to address issues of prolonged tenures and fraudulent practices.
Likoni MP Mishi Mboko, on Sunday, tasked Oparanya with sharing insights into strategies that he would implement to ensure effective succession planning within the cooperative sector.
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Mboko, a member of the Committee on Appointments, expressed concern over the rise of fraudulent financial organisations that have been deceiving Kenyans.
“There have been fraudulent financial organisations that are coming up and Kenyans are being lured and are giving up a lot of money. Others tell Kenyans to plant a seed, and then they will harvest. What mechanisms are you going to put in place so that you safeguard Kenyans from losing a lot of money to such fraudulent activities?” she posed.
In response, Oparanya assured that he would implement term limits for cooperative officials to prevent extended tenures. He further emphasised the need for a structured approach to elections and appointments within cooperatives.
“As a ministry, we must come up with criteria for how the officials of the cooperatives should want to be elected or appointed. Someone is elected to be chairman and serves for 30 years until he goes to the grave. And if he vies in elections, he wins. Why can't we create term limits? If given a chance, I will create a term limit for board members and CEOs. If it's a three-year contract, you renew once and disappear. Even if you are so good, we will say that goodness of yours, take it elsewhere,” he said.
Speaker Moses Wetangula and his deputy Gladys Boss and other members of the National Assembly Committee on Appointments vet Cooperatives CS nominee Wycliffe Oparanya on Sunday, August 4, 2024. (Photo: Parliament)
Oparanya also proposed the creation of a Deposit Protection Fund to safeguard members' investments in the event of an institutional collapse.
“This will provide a proper framework to ensure that members' money is not lost in cooperatives,” he stated.
He emphasised that micro and small enterprises are crucial for the country's economic transformation, employing approximately 15 million people. He highlighted the importance of training Kenyans in financial literacy as a core function.
Oparanya further addressed the potential consolidation of the Uwezo Fund, the Youth Fund, and the Women Fund. He acknowledged that such a merger could be politically charged but stressed the need for sensitisation.
“On the question of merging the Uwezo Fund, Youth Fund, and Women Fund into one, this issue is sometimes political,” he explained.
“If we can collaborate with MPs to consolidate these funds and create units within this structure so that each vulnerable group receives its share, I believe it will be highly effective. That is the direction we should take,” he added.
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