Savings are the cornerstone of financial stability and resilience, serving as a lifeline during times of uncertainty and opportunity alike.
Cabinet Secretary for Co-operatives and MSMEs Simon Chelugui says steadfast commitment towards saving ensures a financial stability in future.
He was speaking during Kenya Police DT Sacco Top Savers’ Conference held in Diani.
“Your steadfast commitment to saving not only secures your own financial future but also contributes to the collective strength of your SACCO and the broader cooperative movement. Each deposit made represents a vote of confidence in your cooperative shared vision of prosperity and empowerment,” he stated.
Furthermore, the CS noted that savings are instrumental in facilitating access to credit and investment opportunities, enabling members to realize their aspirations and build a brighter tomorrow for themselves and their families.
He challenged the board and management of the Sacco to reaffirm their commitment to cultivating a culture of prudent financial management and savings mobilization, ensuring that every member has the opportunity to thrive and prosper.
“Today, as we gather to honor top savers, I am deeply convinced that their dedication to saving has been significantly bolstered by the attractive returns offered by your cooperative. With dividends on share capital reaching an impressive 17% and interest on deposits standing at an enviable 11%, it is evident that your cooperative is providing unparalleled benefits to its members,” said Chelugui.
These, he said not only incentivize saving but also foster a sense of financial security and empowerment among members, setting a benchmark for excellence in the financial services sector.
He expressed his delight in the cooperative’s outstanding performance in various arenas, including being recognized as the best-managed SACCO countrywide during the National Ushirika Day Celebrations for the year 2023.
Additionally, well-deserved victory in the SACCO category of the FiRe awards further underscores unwavering commitment to excellence and innovation.
“Such accolades are a testament to the dedication and hard work of your team, as well as the trust and support of your members,” he added.
The CS assured Cooperators of the commitment of the government to fostering an enabling environment for the growth and development of cooperatives in Kenya.
Currently, various reform initiatives are underway, with the aim of transforming cooperatives into modern, 21st-century business entities capable of propelling the country to the next level of development.
“Regarding savings, I want to assure all savers that the Cooperatives Bill 2024 includes provisions specifically designed to safeguard their interests. These measures offer protection against both employers who neglect to remit their deductions and cooperatives that fail to refund deposits promptly should a member decide to transition out of a cooperative. This commitment to accountability and member protection underscores our dedication to ensuring the financial security and peace of mind of all cooperative members,” he said.
According to the CS, other measures target the production value chains, which, under the BETA agenda, will be driven through the cooperative model.
Emphasizing particularly on various agro-value chains, the government is directing its focus on value chains in Arid and Semi-Arid Lands (ASAL) areas.
Among the innovative technologies being promoted in Kenya is the feedlot system of beef livestock keeping, commonly found in high-yield beef cattle keeping nations.
Upon implementation, this system is poised to enhance both the yield and quality of livestock products, thereby enabling Kenya to access premium markets in Europe, America, and Asia.
“It is with great anticipation that we announce the imminent inauguration of the first government-supported feedlot at Baringo county by Olmarai Farmers Cooperative Society Limited, with plans for similar initiatives to follow in other regions of Kenya. These endeavors signify a pivotal step towards modernizing our agricultural sector and enhancing the competitiveness of our cooperative enterprises on the global stage,” said Chelugui.
The CS urged cooperatives to steadfastly uphold principles of good governance and best business practices, which are essential for attracting more members and encouraging increased investment.
He appealed to cooperatives to prioritize affordability in their product offerings, thereby ensuring that members have access to financially viable opportunities.
“I emphasize the importance of maintaining a minimal interest spread, which represents the difference between interest charged on loans and returns paid to members. I propose that this metric be utilized to recognize the best-performing cooperatives, with a thinner spread indicating superior performance,” he stated.
Author: Pristone Mambili
A trained Journalist with passion for Radio and online Writing.