The Ethics and Anti-Corruption Commission (EACC) has flagged governance weaknesses and potential corruption loopholes within Kenya's co-operative sector, calling for urgent reforms to strengthen oversight and accountability.

🇰🇪 Breaking It Down

In its report presented to the  State Department for Co-operatives on Tuesday, August 18, the commission identified gaps in governance and internal controls that it said could create opportunities for corruption and resource misuse.

The review covered technical and support functions within the State Department for Co-operatives as well as several semi-autonomous government agencies, including the Sacco Societies Regulatory Authority (SASRA), New Kenya Co-operative Creameries Limited (New KCC) and the New Kenya Planters Co-operative Union (New KPCU).

"The Ethics and Anti-Corruption Commission (EACC) has presented a report to the State Department for Co-operatives, identifying governance gaps and recommending reforms to strengthen oversight and curb corruption in the sector," EACC stated.

📌 What You Need to Know

EACC Commissioner Alfred Mshimba said that strengthening governance in the co-operative sector was critical to protecting resources that could otherwise be lost to corruption.

"Every resource safeguarded from corruption is a resource available for investment in housing, education, enterprise, agriculture, and the welfare of Kenyan families," Mshimba said.

The Commission recommended strengthening governance and accountability mechanisms, improving oversight and internal controls, and addressing weaknesses identified during the examination.

The report comes amid growing concerns among Kenyans in various SACCOs about the introduction of a new delegate-based governance system in large co-operative societies, with members arguing that the model could limit their direct participation in decisions affecting their savings and investments.

Among those opposing the system is Federation of Kenya Consumers (COFEK) Secretary General Stephen Mutoro, who has urged SACCO members to protect what he described as their direct voting rights.

Mutoro questioned how delegates would be selected and held accountable, arguing that members should understand the implications of replacing direct participation with a representative system before approving the changes.

📰 Source: Kenyans.co.ke