Uproar as SACCOs Oppose New Govt Directives

Kenyans across various SACCOs have opposed a new delegate system of governance being introduced in large cooperative societies, arguing that it could limit the direct participation of ordinary members in decisions affecting their savings and investments. Breaking It Down The opposition comes as Nation DT Sacco prepares to hold a Special General Meeting (SGM) on Saturday, August 15, where members will vote on a proposal to amend the society’s b

08/11/26  •  2 Views

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Kenyans across various SACCOs have opposed a new delegate system of governance being introduced in large cooperative societies, arguing that it could limit the direct participation of ordinary members in decisions affecting their savings and investments.

🇰🇪 Breaking It Down

The opposition comes as Nation DT Sacco prepares to hold a Special General Meeting (SGM) on Saturday, August 15, where members will vote on a proposal to amend the society’s by-laws to incorporate the Delegate System of Governance.

The meeting, scheduled to start at 8am at St Andrews Church along Nyerere Road in Nairobi, will also consider an election policy, member education and any other special business for which due notice has been given.

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.

📌 What You Need to Know

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.

“On 15th August, you are being asked to trade your direct vote for a Delegate System. Sounds harmless, until you ask: Who picks the delegates? Who do they answer to? And who benefits when ordinary members are one step removed from decision-making?” Mutoro said.

He further warned that the system could reduce scrutiny of SACCO boards, particularly on issues such as remuneration, tenders and audits, urging members to attend meetings and demand answers before approving the proposed changes.

The proposed delegate system follows a directive issued by the Commissioner for Cooperative Development in July 2025 requiring cooperatives with more than 5,000 members to adopt the model for their general meetings .

Under the directive, affected cooperatives are required to have between 150 and 500 delegates representing the wider membership, with the societies also expected to amend their by-laws to formally recognise the new governance structure.

The government has argued that the system will make general meetings more manageable for large cooperatives while allowing members to participate through elected representatives.

📰 Source: Kenyans.co.ke

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