EACC and the State Department of Cooperatives partner to tackle corruption in Saccos

Ethics and Anti-Corruption Commission (EACC) and the State Department of Co-operatives (SDC) have partnered in a move to combat and prevent corruption, economic crime and unethical practices in the co-operative societies.
The two will sign a Memorandum of Understanding (MOU) and action plan to streamline the Sacco industry which has recently been dogged with mismanagement of member funds with the latest being Ekeza sacco scandal.
Principal Secretary for Cooporatives Susan Mochache said that in an effort to address these challenges, her Department has vested the responsibility of co-operative governance to Ethics Commission for Co-operative Societies (ECCOS) domiciled within the State Department for Co-operatives.
“The co-operative movement in Kenya is rated first in Africa with over 22, 000 registered co-operative societies commanding a membership of over 14 million and employing more than 500, 000 Kenyans directly and another 1.5 million indirectly,” said the PS.
She explained that co-operatives in Kenya have mobilized members’ savings and deposits of over Sh732 billion, with an asset base of over Sh1trillion and loan portfolio exceeding Sh700 billion as at 2017. Co-operatives thus contribute to about 30 per cent of the National savings.
Commissioner of Co-operatives Mary Mungai said that co-operatives have been of great impact in the social-economic development by contributing to 7 per cent in the agriculture sector.
According to Mungai, the MOU is set to focus on capacity building, sensitization by training and creation of synergies with EACC insisting that the more businesses are becoming popular the more co-operatives’ rules are not adhered to.
EACC CEO Twalib Mbarak said their main aim was to avert scandals adding that so far, a total of 409 complaints have been lodged touching on co-operative sectors and rebellions were likely to occur if SACCOs are mismanaged.
“Nepotism should not be practiced in SACCOs but employ people on merit. SACCOs should be administered with a lot of transparency,” said Mbarak.
He acknowledged that the partnership would help by strengthening capacity and making the country corruption free.
“We are very particular in combating and preventing corruption as we are set to monitor unethical practices to deter corruption. We should also raise awareness and educate the public on the same,” said EACC Commissioner Dabaar Maalim.
“We are all beneficiaries of co-operative societies and we therefore should validate MOU on the fight against corruption. Strict measures should be put to safeguard the fight as these co-operative societies help solve grass root problem and as a commission, we are committed towards this course,” said Rtd. Archbishop Eliud Wabukala.
By Valencia Nasimiyu/ Elizabeth Wambui/ Joseph Ng’ang’a