Page 18 - SACCO STAR ISSUE 43
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SACCO INDUSTRY WATCH
implication is that it does not bring any
additional benefit to the members of the
society thus negating reason of making
a resolution to admit the special impact
members in the first place.
Universally, Co-operatives are
autonomous association of persons
united voluntarily to meet their common
economic, social, and cultural needs and
aspirations through a jointly owned and
democratically- controlled enterprise
whose legislation are guided by ILO’s
recommendations on the promotion of
Co-operatives .
societies, the establishment of an Committee is un-implementable in Co-operatives are founded on the values
Investment Committee to monitor its current form since it requires an of self help, self responsibility and self
and supervise the Special Fund and individual to posses a multiplicity of sufficiency. Since independence Co-
the appointment of a Special Fund bachelor degrees. operatives have continued transforming
Trustee who shall be responsible the lives of Kenyans by empowering
for receiving and investing the The establishment of the special them socially and economically. The
Special Fund. fund trustee will create another creation of new structures to promote
center of operation outside the social impact in co-operatives is
The creation of the fund is not jurisdiction of the existing governing superfluous and unwarranted.
necessary since a similar fund authority (SACCO board). Further, the
exist under the Co-operative relationship between the Special This bill introduces un-mitigated
Societies Act section 90 A”-Co- Fund Trustee as a body corporate risks to the ordinary members since
operative Development Fund”. The and the SACCO Society as a legal any malpractice on the fund will
establishment of an Investment entity is not clearly spelled out in be borne by the members. The bill
committee will introduce a parallel the amendments. discourages savings mobilization by
governance structure outside ordinary members since there will be
the existing structure provided Thus these amendments will cause no motivation for them to save as they
in section 28 of Co-operative conflicts and confusion in the cannot access funds contributed by
Societies Act which stipulates that administration of SACCO business; Social Impact Members.
the Committee (Board) shall be the and restricting the sharing of
governing body of the society. surplus from the Special Fund
to Special Impact Members only
The appointment of the investment is discriminatory and therefore
committee by the Social Impact against the co-operative spirit. The
Members is contrary to the
provisions of Section 28 (3) which
exclusively confers powers to
the Management (Board) to enter
into contracts. The Investment
committee is amorphous and
ambiguous since it is neither a
committee of the governing body
nor management. The prescribed
qualification for Investment
16| SACCO Star Magazine
