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{
    "id": 850179,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/850179/?format=api",
    "text_counter": 484,
    "type": "speech",
    "speaker_name": "Kiminini, FORD-K",
    "speaker_title": "Hon. (Dr.) Chris Wamalwa",
    "speaker": {
        "id": 1889,
        "legal_name": "Chrisantus Wamalwa Wakhungu",
        "slug": "chrisantus-wamalwa-wakhungu"
    },
    "content": "Cooperatives play a very critical role in the economic development of this country. As the Chair of the Departmental Committee on Trade, Industry and Cooperatives has clearly put it, the SACCO industry right now has an asset base of more than Kshs1 trillion. The SACCOs are way bigger than some banks. Surprisingly, directorship of those SACCOs is based on how much you have saved. In terms of academic qualification, some directors do not even understand or interpret a basic financial statement. I am happy to note that one of the amendments is going to put some qualification of the directors. If you are a director, you are at the apex of the institution. In terms of decision-making, you are there to oversee management, to provide supervision and critical decisions when it comes to approval. I am happy to note that from today henceforth, the directors will have some minimum academic qualifications and not only minimum academic qualifications, they are also supposed to have continuous professional development just like other professions because the world is changing. They must also embrace the aspect of Information, Communication and Technology (ICT). Most of these SACCOs are so huge but they are using some outdated systems when it comes to issues of data. So, embracing use of ICT is going to bring efficiency, effectiveness and it is going to ensure that this issue of credit sharing works. If you are not credit worthy, you can jump from one SACCO to another. You fleece this and you take off. Those days are gone. I thank the Committee for the good work they have tried to put across. We know that SASRA is a regulatory institution but I have gone to counties but I have not seen it. It must be cascaded down. It is high time this institution got well -funded from the Exchequer. I am saying this so that when the Chair will be replying, he responds because this is a budget-making House. We should increase the funding for SASRA so as to devolve its services because it is there for regulatory and supervision purposes. We have giant SACCOs in this country. Talk of Harambee SACCO, the teachers’ SACCO, talk of Magereza SACCO and Stima SACCO. These control billions of shillings. Unfortunately, you will find that some of the directors who are unscrupulous end up siphoning that money. They take off with the money because the issue of integrity was not there. You cannot be a director only on academic qualification. You must have integrity. Chapter 6 of the Constitution is very clear. For those SACCOs that have been having directors because of the lion share they have, those days are gone. If SACCOs are well regulated they can give competition to the banks. When you go to the banks to get a loan, it takes forever at times. We have things like emergency loans in SACCOs. When you want to get an emergency loan in the SACCO, some of them take as little as one or two hours and you get your money. We have PACOSO in this Parliament. I have been saving with it. I have been saving money for my campaigns in that SACCO. It is very efficient. For you Hon. Members who want to come for the second time, please save your money with Parliament SACCO. You will have your money any time you need it, within an hour or 30 minutes. This is what the SACCOs are doing. There are a lot of hidden charges that you do not know when you go to the banking industry to get your money. It takes forever for you to access your money. This regulation is going to add a lot of value as far as the success of the SACCOs is concerned. When you go to Canada you will find that the SACCO movement is at the top. It has contributed very well to the success of the economy. It is important we embrace these issues of SACCOs for us to enhance the issues of success even when it comes to businesses. You can easily get your money for business ventures through the SACCOs. It is important this regulatory The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}