The government is set to formulate a law to protect investors in cooperatives and Saccos in the country.
The law aims to ensure savings and investments of clients are secured from embezzlement by various cooperatives and Saccos according to Parliamentary Departmental Committee for Trade, Industry and Cooperatives Chairman James Gakuya.
Speaking at the Machakos Social Hall during a public hearing of Cooperatives Bill 2024, Gakuya said the current act has loopholes that does not protect investors.
“The Bill intends to seal these loopholes by addressing the challenges in cooperatives and Saccos so that investors such as retired teachers are protected,” said Gakuya who is also the Member of Parliament for Embakasi North.
He highlighted that many clients especially those in the diaspora invest in land buying companies and their money ends up getting embezzled causing mistrust in cooperatives and Saccos in the country.
Additionally, Gakuya said the Bill will ensure professionalism and integrity in the appointment of cooperative and Sacco managers to safeguard members’ investments and encouraged Kenyans to invest in Saccos.
Machakos Women Representative Kamene Kasimbi on her part warned the Directors and Chairmen of cooperatives and Saccos that they will be held responsible in case of any embezzlement.
The legislator also underscored the importance of gender balance in the management of cooperatives and Saccos.
By Anne Kangero
