By Our Reporter
The acting Commissioner for Co-operative
Development Geoffrey Njang’ombe is facing a full-in tray for the sector, with
little time to settle given the disruption caused to the economy by coronavirus
pandemic.
Mr Njang’ombe took over from Didacus Ityeng who
served briefly in acting capacity following the exit of Mary Mungai in April
last year. Ms Mungai had been appointed the first, lady Commissioner for
Co-operative Development on 7th December 2016 for a three-year term.
She exited with a mixed bag of fortunes, leaving
behind several unfinished agenda that gives her successor little room to
settle. The situation has been complicated by the coronavirus that has left
some Saccos fighting for liquidity.
Covid-19 has reinforced the need for deeper
investment in digital services to ensure the sector operates even in difficult
conditions as those brought about by the virus.
For instance, Mr Njang’ombe had to allow Saccos to
pay dividends without holding annual general meetings since the state had
banned large gatherings. Yet, many Saccos are ill-prepared in holding virtual
meetings.
Mr Njang’ombe will be expected to speed up the
digitization of Co-operatives department data so as to provide efficient
services to Saccos. The department already had Co-operative Information
Management System, but this has only been piloted in Nairobi.
The new boss will have to roll this out countrywide
to ensure services such as filing of wealth declaration forms by Sacco bosses
or submitting of annual returns and audited accounts is done digitally.
Co-operatives see this as an opportunity to speed
up quality of service delivery while cutting on costs in order to compete with
other financial service providers.
He will also be expected to work closely with Sacco
Societies Regulatory Authority (Sasra) to establish a central liquidity
facility for Saccos. This has remained a proposal for a while.
This is seen as a step closer to participating in
the national payment system especially that Saccos have now been allowed to
access the credit reference bureaus (CRBs) records.
Kenya Union of Savings and Credit Co-operatives
(Kuscco) showed the way by forming the Central Finance Fund to help Saccos to
borrow money when need arises.
Mr Njang’ombe is also expected to steer the
formation and implementation of National Co-operative Development Policy and
regulations for Specified non-deposit taking Saccos.
The policy is supposed to help tackle governance
lapses in the co-operatives movement that have seen members lose money.
Several co-operatives societies are reeling under
the weight of mismanagement, fraud and bad loans that have raised questions on
quality of management.
“The policy has deliberate interventions to do with
the governance, such as to legislate on who can be a leader in the
co-operative,” Mr Njang’ombe was recently quoted in the press as saying.
More than two years ago, the state appointed a task force to
draft rules governing non-deposit taking SACCO businesses in Kenya at a time
around 6,000 co-operatives were not under any strict supervision and therefore
breeding corruption.
The policy will among other things set requirements
for who can manage a co-operatives society and the penalties for flouting the
rules governing the movement.
Saccos such as Ekeza Sacco that went under with
members’ billions are among the several Saccos that have exposed existing
government lapses in the sector.
