Government unveils transition board to restructure KUSCCO

The Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development has inaugurated an 11-member Transition Board to oversee major reforms at the Kenya Union of Savings and Credit Cooperatives (KUSCCO).

The board will lead the transformation of KUSCCO into a modern National Cooperative Federation. It is expected to protect the interests of SACCO members, recover lost assets, and guide the organization towards becoming a more efficient and accountable body.

Co-operatives Cabinet Secretary Wycliffe Oparanya said the restructuring is part of broader efforts to strengthen the cooperative movement in Kenya.

“This board has a big role to play in ensuring transparency and member protection in the cooperative sector,” said CS Oparanya.

“It will also help rebuild KUSCCO into a professional, reliable and forward-looking apex organization.”

The new board is chaired by David Mategwa of the Kenya National Police SACCO and vice-chaired by Jennifer Mburu of Mhasibu SACCO. Other members include Brenda Obondo (KMA), Robert Njue (WINAS), Osmane Khatolwa (Stima DT SACCO), John Ziro (Imarika DT SACCO), Philip Rirei (Noble), Michael Muriithi (Unaitas), Priscilla Maranga (Office of the Commissioner), Mary Kweyu (Invest and Grow), and Charles Kioko (GDC).

At the same time, the ministry has suspended the registration of new SACCOs for three months to allow a review of current laws and practices in the sector.

The ministry has also appointed a Committee of Experts to review the SACCO Societies Act and suggest reforms that align Kenya’s cooperative system with international standards.

The five-member committee is chaired by Marlene Shiels, CEO of Capital Credit Union in Scotland. Other members are Maurice Smith (African American Credit Union Coalition, USA), Gina Carter (CEO of Husch Blackwell and Board Member of Redwood Credit Union, USA), Odhiambo Collins Harrison (Kenyan constitutional law expert), and Gamaliel Hassan (CEO of Stima DT SACCO).

They will be supported by a technical team led by Morris Muriungi and John Ongatta.

This committee has a three-month mandate to assess the relevance of the current Cooperatives Act, propose necessary legal changes, and explore new structures such as a Central Liquidity Facility, a Deposit Guarantee Fund, and shared services for SACCOs.

CS Oparanya said the ministry is committed to building a strong, inclusive and well-regulated cooperative sector that can serve the over 14 million SACCO members in Kenya.