Wetang’ula calls for urgent Sacco law reforms to safeguard members’ savings

National Assembly Speaker Moses Wetang’ula has urged Members of Parliament to urgently review cooperative laws, warning that existing loopholes continue to expose members’ savings to mismanagement and financial loss.

Speaking during the launch of Shirikiana Sacco at Masinde Muliro University of Science and Technology, Wetang’ula emphasised the need for a thorough legal overhaul to protect cooperative members from resource plunder and weak governance structures that he said continue to undermine the sector.

“I have urged Members of Parliament to urgently review cooperative laws and close loopholes that expose members’ savings to mismanagement and loss,” he said.

He further cautioned that persistent governance challenges remain a major threat to the cooperative movement, calling for stronger accountability mechanisms to safeguard public confidence in Saccos.

“I also called for a thorough review of the law to stop the plunder of resources, noting that weak governance continues to threaten savings in cooperatives,” Wetang’ula added.

The Speaker described the launch of Shirikiana Sacco as a significant step towards economic empowerment, noting that cooperatives play a central role in reducing poverty, building wealth, and improving livelihoods.

He said such initiatives provide structured financial systems that enable members to save and invest in their futures.

“Speaking at the launch of Shirikiana Sacco at Masinde Muliro University of Science and Technology, I said the initiative is key to reducing poverty, building wealth and improving livelihoods,” he noted.

Wetang’ula pointed to Sweden as an example of a strong cooperative culture, where citizens across all social classes, including leaders and ordinary people, actively participate in cooperative savings systems.

He said Kenya could draw lessons from such models to strengthen its own cooperative movement.

“I cited Sweden as an example, where all citizens, from leaders to ordinary people, are members of cooperatives and save for the future,” he said.

He encouraged Kenyans, particularly farmers and business owners, to invest in Saccos, describing them as a secure and reliable way of saving money and building financial resilience.

“We encouraged Kenyans, especially farmers and business owners, to invest in Saccos as a safe way of saving money,” he said.

The Speaker also commended President William Ruto for appointing Wycliffe Oparanya as Cabinet Secretary for Cooperatives and Small and Medium Enterprises, saying the move would strengthen the sector and elevate the role of cooperatives in national development.

“I commended President William Ruto for appointing Wycliffe Oparanya as Cabinet Secretary for Cooperatives and SMEs, as this will strengthened the sector and raise the profile of the cooperative movement,” Wetang’ula said.

He stressed that governance weaknesses remain the most serious threat to the sector and called on the Parliamentary Committee on cooperatives, led by Ikolomani Member of Parliament Bernard Shinali, to enhance oversight and ensure members’ savings are protected from misuse.

“Indeed, governance challenges remain the biggest threat to the sector therefore called on the Parliamentary Committee led by Ikolomani MP Bernard Shinali to strengthen oversight and protect members’ savings from misuse,” he added.

Wetang’ula further underscored the importance of Saccos based on personal experience, stating that he has supported his family over the years through dividends and financial assistance derived from cooperative savings.

“I testify of the importance of Saccos as I have personally supported my family over the years through dividends and financial support,” he said.

He concluded by calling for unity among leaders in Western Kenya and across the country, stressing that political cooperation and peace are essential for national development and shared prosperity.

“I continue to call for unity among Western Kenya leaders and other regions since political cooperation and peace are essential for national development and shared prosperity,” he said.