The government has launched a nationwide crackdown on Savings and Credit Cooperatives (SACCOs) to ensure transparency and protect members’ funds. Cooperatives Cabinet Secretary Wycliffe Oparanya announced on Tuesday, February 18, that a forensic audit would be conducted to identify and punish corrupt officials.
Oparanya revealed that many SACCOs in the country are facing financial challenges due to mismanagement and fraud. He emphasized that the government is determined to restore confidence in cooperative societies by holding those responsible accountable.
“The government is implementing strict measures to stop financial mismanagement. Anyone found guilty will face legal action,” Oparanya stated.
To strengthen SACCO operations, the government also plans to introduce new regulations and provide training for SACCO officials. The CS urged cooperative societies to improve their internal systems to prevent fraud and protect members’ savings.
The crackdown comes amid allegations of corruption at the Kenya Union of Savings and Credit Cooperatives (KUSCCO). Former KUSCCO CEO George Ototo recently surrendered to the police after being accused of mismanaging Ksh82 million. He was among five suspects arrested and later released on cash bail of Ksh14 million.
Oparanya assured the public that similar measures would be taken against any SACCO leader involved in financial misconduct. He warned that the government will no longer tolerate misuse of members’ funds.
The government’s actions are aimed at restoring order in the cooperative sector and ensuring that SACCOs operate efficiently for the benefit of their members.
By Newsmedia