Sacco leaders have opposed proposals to put a two term limit, age and education restrictions on elected cooperative leaders saying the mandate to fire and hire squarely lies with the members.
At the National Cooperative Development Policy draft the leaders also opposed additional capital injection from venture capitalists as proposed by the policy.
In a bid to streamline the Sacco sector and protect member savings in light of the recent collapse and financial distress of some societies, the government proposed a raft of new policies to guide operations of the movement.
They include introduction of venture capitalists into Saccos a move opposed by stakeholders saying it’s an attempt to sneak back the social impact members, a proposal that was earlier rejected by Sacco members adding that Saccos lack capacity to handle private equity.
Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 22163
The leaders also want term limits for elected Sacco leaders to be removed and recruiting and sacking of Sacco leaders be left to members.
The Cooperative alliance of Kenya also proposes deletion of age and education restriction on Sacco leaders and instead strengthen measures to curb corruption and mis- management of the societies.
The association further wants tougher penalties given to organizations that fail to remit members contribution on time.
The proposed draft policy is expected to be presented to cabinet for approval later this month before being presented to parliament.
