The government has announced plans to change the Kenya Union of Savings and Credit Co-operatives (KUSCCO) into a federation, setting the stage for sweeping reforms in the SACCO sector.

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The move is part of the Cooperative Ministry's long-term strategy to strengthen governance, accountability and oversight in the cooperatives' movement.

Co-operatives Cabinet Secretary Wycliffe Oparanya announced the changes after meeting KUSCCO's Board of Directors, revealing that the Ministry will also convene a meeting with SACCO leaders.

Speaking on Thursday, July 16, Oparanya said the meeting seeks to prepare the sector for the implementation of the reforms under the proposed Cooperative Societies Bill.

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"I visited KUSCCO, where I received a comprehensive briefing on restructuring the organisation to strengthen governance, improve operational efficiency, and restore confidence in the cooperative movement," he said.

"I was encouraged by the strides made in recovering assets to safeguard the interests of members, as well as the ongoing preparations to transition KUSCCO into a federation in line with the envisioned reforms," Oparanya added.

Under the new structure, KUSCCO will shift from its previous dual role as both a financial services provider and umbrella body to a federation focused only on promoting good governance in SACCOs.

On the Cooperative Societies Bill, Oparanya said the proposed law will strengthen governance, accountability and sustainability in the cooperative sector once enacted.

"As we move closer to the enactment of the Bill, the Ministry will convene a series of engagements with cooperative leaders across the country to apprise them of the reforms and prepare the sector for effective implementation," he stated.

The latest reforms come in the wake of the Ksh13.3 billion KUSCCO scandal last year, which exposed widespread financial mismanagement at the umbrella body representing Kenya's cooperatives.

📰 Source: Kenyans.co.ke