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{
    "id": 850189,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/850189/?format=api",
    "text_counter": 494,
    "type": "speech",
    "speaker_name": "Gichugu, JP",
    "speaker_title": "Hon. Gichimu Githinji",
    "speaker": {
        "id": 13341,
        "legal_name": "Robert Gichimu Githinji",
        "slug": "robert-gichimu-githinji"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker. I rise to support. One of the issues coming out very clearly in this Bill shows there will be a clear distinction between the SACCOs that are under the ambit and jurisdiction of SASRA and other SACCOs that will just be governed by the Ministry of Industry, Trade and Cooperatives under the Department of Cooperatives. In this case, SASRA will be able to regulate SACCOs that have been depriving members of their hard earned savings. We have seen in the media SACCOs that I may not have to mention their names here. That might be prejudicial. So many SACCOs have been in the media as having not been able to account to their members of their savings. It will be the responsibility of SASRA to make sure that SACCOs that meet the threshold of a certain savings are categorised as FOSA will now be classified as DT SACCOs. That will remove the confusion that has been there that a SACCO is a SACCO. We have seen matatu SACCOs and others in the rural areas where people come together and form close to a self-help group and make them SACCOs or even boda boda SACCOs. It is just to bring them together for purposes of security and other issues. I would in this case propose that, going forward, SASRA should be able to do an audit of all the SACCOs within the country which deal with money. That is so that the ones that meet the threshold of becoming DT SACCOs can automatically be enlisted. It should not be an option for a SACCO to decide whether they will be classified as a DT SACCO or a normal SACCO, it should be based on the financial muscle of a certain SACCO. Should we leave to some SACCOs to just apply, then there will be a lot of conspiracies or even concealing of information. Once audits are done including the bank accounts of SACCOs, then that would come out clearly and SASRA will be in control. I think towards the next level of the Committee of the whole House, it will be good to bring an amendment that DT SACCO will be operational after attaining a certain financial threshold but it will not be an optional thing. The other thing that this Bill seeks to cure is lack of enough knowledge when it comes to management of SACCOs. We have seen SACCOs collapsing because members and the directors and not endowed with the knowledge that is required to run these SACCOs. This Bill seeks to cure that so that we can have proper management. That lacuna that has been existing in law will be cured through this Bill. The other issue is on standards. There are significant standards that have to be met. This may also be included in the regulations, but when standards have been met or put in place for some members to go for some training courses or certification and even be able to participate in SACCO affairs, then that protects the SACCO from invasion of other people who are not able to run those SACCOs."
}