Cooperative and Micro, Small, and Medium Enterprises (MSMEs) Cabinet Secretary Wycliffe Oparanya has called for urgent action to address the mounting backlog of cases within the Cooperatives Tribunal. The visit highlighted the pressing need for increased funding and support to expedite the resolution of at least 14,000 pending cases, which have been delayed due to financial constraints.
Speaking at the Kenya Police Sacco, which stands as Kenya’s third-largest SACCO, Oparanya emphasized the critical role of adequate funding in clearing these cases. “There are currently at least 14,000 cases which are yet to be concluded due to the funding constraints,” Oparanya noted. He explained that while he has limited direct control over the matter, he plans to engage with the Chief Justice to advocate for enhanced support for the Cooperatives Tribunal.
The Cabinet Secretary expressed concern over the technological challenges that members face as a result of the ongoing digitization of court processes. He urged the Judiciary to consider these challenges to avoid jeopardizing the resolution of pending cases. “It’s only to approach the Chief Justice so that we can get support in terms of the Cooperatives Tribunal,” he said, underscoring the need for a balanced approach that accommodates members’ technological capabilities.
In addition to addressing the backlog, Oparanya announced that the ministry is working on establishing a fund to safeguard depositors from potential losses in the event of SACCO collapses. This initiative aims to bolster the financial security of members and ensure the stability of SACCOs. “We are having a meeting next week on Wednesday to look at it, and we are hopeful it will be one of the miscellaneous amendments that will come before the end of the year,” Oparanya revealed.
The visit also served as an opportunity to commend Kenya Police Sacco for its exemplary performance and adherence to legal standards. Oparanya praised the SACCO for its significant growth, both in membership and financial assets. As of the end of the previous year, Kenya Police Sacco boasted a membership base of 75,411 and an asset base of Ksh 54.2 billion. The SACCO’s loan book grew impressively to Ksh 45.7 billion, while total revenue and deposits reached Ksh 8.7 billion and Ksh 31.7 billion, respectively.
Furthermore, Kenya Police Sacco reported a core capital amounting to Ksh 17.8 billion, demonstrating its robust financial health and effective management. This financial strength reflects the SACCO’s successful adherence to regulatory standards and its commitment to member welfare.
Oparanya’s visit and statements underscore the government’s commitment to enhancing the efficiency and security of SACCO operations. By addressing the funding constraints faced by the Cooperatives Tribunal and pursuing protective measures for depositors, the ministry aims to fortify the SACCO sector and ensure its continued growth and stability.
As the ministry prepares for its upcoming meeting to discuss the establishment of the protection fund, there is optimism that these efforts will lead to meaningful reforms and improvements within the SACCO system. The push for increased support and resources highlights the critical need for a comprehensive approach to resolving the challenges facing Kenya’s cooperative sector.
