Strengthening Cooperative Governance at the County Level
Kilifi County has made a significant move to strengthen the governance of Savings and Credit Cooperative Societies (SACCOs). Through the Kilifi County Cooperative Policy and the Kilifi County Cooperative Act 2023, the county aims to enhance accountability, safeguard members’ interests, and promote transparency across all cooperative operations.
The announcement took place during the Imarika SACCO Delegates Meeting in Kilifi Town. County officials emphasized how the new legal framework will guide SACCO management, prevent mismanagement, and enhance trust among members.
For more updates on SACCO news, visit Sacco Champions.
For a detailed understanding of how SACCOs should report and manage finances, explore this guide: Sacco Financial Management and Reporting.
Key Highlights of the New SACCO Reforms
1. Adoption of the County Cooperative Policy
The Kilifi County Assembly has approved the new policy, setting the strategic direction for SACCO growth and sustainability within the region.
2. Kilifi County Cooperative Act 2023 Signed
Governor Gideon Mung’aro has officially assented to the Act, opening the door for gazettement and implementation of county-level cooperative regulations.
3. Development of Operational Regulations
The county will now focus on drafting detailed regulations to ensure SACCOs operate in line with the new legal framework.
4. Alignment with National Cooperative Reforms
These county-level reforms complement Kenya’s national Cooperative Societies Act review and the Cooperative Bill awaiting Senate approval, creating harmony between local and national oversight.
Why These Reforms Matter
The introduction of these county-specific cooperative laws shows Kilifi’s dedication to addressing local challenges within SACCOs. Localized regulation enhances oversight, ensures compliance, and boosts confidence among members and investors alike.
Protecting SACCO Members
The new law prioritizes the protection of members from poor governance, mismanagement, and exploitation.
Enhancing Accountability
It introduces stricter financial reporting and governance standards, ensuring transparency in SACCO operations.
Improving Transparency
By encouraging ethical leadership, the law promotes integrity and openness within cooperative management.
Building Investor Confidence
Well-regulated SACCOs attract partnerships and increase savings due to enhanced trust and governance stability.
Potential Impacts on SACCOs
| Positive Impact | Possible Challenge |
|---|---|
| Increased member trust and confidence | Smaller SACCOs may face compliance costs |
| Stronger governance and accountability | Overlap with national laws may cause confusion |
| More innovation opportunities under clear regulation | Implementation delays could arise |
| Improved collaboration with county and partners | Need for member and board sensitization |
These impacts highlight the balance between growth opportunities and adjustment challenges for SACCOs under the new framework.
What SACCOs in Kilifi Should Do Now
1. Review the New Law
Every SACCO should access and study the Kilifi County Cooperative Act 2023 to understand its core provisions.
2. Align Internal Policies
SACCOs must update their by-laws and constitutions to match the county’s cooperative framework.
3. Engage the County Directorate of Cooperatives
Participation in stakeholder consultations will ensure SACCOs’ views are considered during regulation drafting.
4. Train Boards and Staff
Invest in capacity building for governance, reporting, and financial management to meet new compliance requirements.
5. Communicate with Members
Transparency with members about operational changes, dividends, and compliance updates will strengthen trust and loyalty.
Conclusion
Kilifi County’s cooperative reforms represent a major step toward responsible and transparent SACCO governance. The combination of county oversight and national alignment creates a robust framework for cooperative growth.
If effectively implemented, these changes will position Kilifi as a model county for cooperative excellence—one where transparency, ethical leadership, and member empowerment thrive together.
Stay informed and explore more SACCO updates at Sacco Champions.
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