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OPINION
A retrogressive Bill?
?:ŽSYEOAu?KOEŽ
Lead consultant at Triangular Link Services. He has previously served as
the Managing Director at KUSCCO LTD (1974-1981) and the CEO at ICPAK
(1993-1994).
The strategy to use the SIM (Social Impact a particular man was appointed the The Co-operative Bank of Kenya
Members) is not new! Commissioner for Co-operatives which he never touched came out
in development in mid 1980s. He of the liberation wave successfully.
It was tried by Government in the past mistakenly felt the co-operative The proposed amendments to the
and failed miserably! leaders had formed a powerful cabal Co-operative Act and SACCOs Act
working against the interest of Co- are retrogressive to the Co-operative
When I started working for the co- NODQ@SHUD@MCTRDCRDBSHNMNESGD movement and should not be allowed to
operative movement in 1974, the Act recklessly and placed management see the light of the day!
movement, through the then vibrant of most leading Co-operative unions
co-operative unions such as KPCU under commissions. I have followed the debate on the
and KCC and the district Co-operative Those he appointed like the proposed proposed miscellaneous amendments
Unions were virtually in control of the social impact members were strangers to (No2) Bill 2018 which targets to include
entire agricultural sector of the country’s the movement. the so called social impact members
economy. The transport and tourism by enlarging section 17 of the Co-
industries were served by a well- In my view, the proposed amendments operative Societies Act to accommodate
organized Co-operative under the name are a reminiscence of this unfortunate strangers to the Co-operative
KENATCO. and reckless step in the management movement and empower them take
of Co-operatives. It can be argued that over the control of SACCO societies.
This wide coverage of the economy by the unions I have listed above were
the Co-operative movement prompted weakened by the wave of economic This is by making section 47 of the
the Government to set up a Ministry for it liberation prevailing at the time. My SACCO Act 2008 impotent as it regards
in 1974. The SACCO sub-sector was in its counter argument is his ruthless policy to members supreme authority over
youthful stage at this time. KUSSCO had was a contributing factor! their Society.
just been registered in 1973. The aim behind the proposed
He mistakenly felt the co- legislation is to make SACCO societies
There was a close working relationship operative leaders had formed a under the supervision of SASRA and
between the Co-operative leaders and powerful cabal working against allow the Government scavenge on the
the Commissioners of Co-operative hard earned savings of Co-operators.
Development. the interest of Co-operative
@MCTRDCRDBSHNMNESGD The proposed legislation will, if enacted,
The Government gave the Co-operative Act recklessly and placed make the Co-operative Societies Act
leaders a free hand to manage the operate on the same principles as
movement within the laws and lead management of most leading a Parastatal Act which allowed the
to its success. This enabled several Co-operative unions under Government to interfere and take
Co-operative leaders to contribute commissions. control of supposedly viable economic
immensely to the expansion of the units and mismanaged them.
movement which was disrupted when
SACCO Star Magazine |33
