Page 35 - Issue 48_press_efile
P. 35
POLICY AND REGULATIONS
Mwatate MP Andrew Mwadime addresses Funyula MP Oundo Ojiambo addresses
participants during a consultative participants during a consultative forum
meeting
Lawmakers support push for new
Co-operative policy
By Ngumbo Njoroge KUSCCO Group National Chairman George Magutu said lack of
a Comprehensive Policy Framework leaves SACCOs vulnerable
The push to enact a new Co-operative policy received a boost to unfavourable legislation, as well unscrupulous business
after members of the National Assembly expressed support practices.
for the proposed policy, saying the new law will revolutionize
the sector. He said Special Impact Members Bill was against the Co-
operatives principles, and would have placed SACCO funds at
Drawn from the committee of Trade, Industry and Co- risk, leaving them to potential losses.
operatives, the lawmakers said the new structure would tame
excesses and promote governance in Co-operatives. Mr. Magutu thanked parliamentarians for supporting
amendments to CAP490, lauding members for opposing the
Speaking during a consultative forum organized by the Kenya Special Impact Members Bill.
Union of Savings and Credit Co-operatives (KUSCCO), Funyula
MP Oundo Ojiambo said the greatest challenge facing SACCOs The Chairman said the Union is supporting the government in
is governance, urging the Union to promote good governance its efforts to enact the draft Co-operative Development Policy,
among affiliate members. 2017. He said the current policy document is unaligned with
the Constitution of Kenya, 2010.
“SACCOs are incurring huge losses because of poor governance.
This policy seeks to address such issues and provide security He requested that the new policy be fast-tracked, to boost the
for members’ savings,” he said. sector by providing a base for legislative review and streamline
the movement by providing a base for legislative review.
In addition, Mwatate lawmaker Andrew Mwadime said
policymakers should fast track the process. He assured Mr. Magutu said the Union requests an amendment to Section
KUSCCO that members of the Committee are knowledgeable 15 (3b) of the Income Tax Act to allow borrowers from Co-
in Co-operatives and are ready to pass the policy. operatives qualify for deductible allowance to mortgage
interest on owner occupied residential houses.
Lang’ata’s MP, Nixon Korir said the policy would help Members
support Co-operatives and SACCOs. He pledged his support On his part, KUSCCO Group Managing Director George Ototo
of the proposed amendments to various legislation, such as said the objective of the policy is to provide a framework that
Income Tax Act and SACCO Societies Act. promotes sustainable and competitive Co-operatives for socio-
economic development in a devolved system of governance.
Korir thanked KUSCCO for being proactive in legislative
matters concerning SACCOs and Co-operatives. The policy seeks to align the legal and regulatory framework to
the Constitution, while promoting governance in Co-operatives.
Gichugu’s Githinji Gichimu said the collapse of some SACCOs,
with huge losses to members, justifies the regulations. In addition, the policy will also address key legislative gaps
and provide strategies for handling emerging issues in the
The lawmaker urged KUSCCO to embrace diaspora SACCOs, SACCO movement.
provide oversight and a leaner framework. He said the policy
must establish room for variation because of the different It also stipulates the role of national and county Governments
contextual reality across counties. in the registration and regulation of Co-operatives.
33| SACCO Star Magazine
