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{
    "id": 851318,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/851318/?format=api",
    "text_counter": 237,
    "type": "speech",
    "speaker_name": "Emuhaya, ANC",
    "speaker_title": "Hon. Omboko Milemba",
    "speaker": {
        "id": 13328,
        "legal_name": "Jeremiah Omboko Milemba",
        "slug": "jeremiah-omboko-milemba"
    },
    "content": "It is actually removing the rights of bon fide members to make decisions on issues that concern investment committees and on issues that concern special funds within the cooperatives. It also removes the voting rights from the organic or the original members to make any decisions on special funds trustees. The cooperative movement began as cooperatives way back in 1908 and 1917 but later on, they also involved themselves in investment. They have already created investment units within themselves. They have created trustees within themselves but this law is bringing a new class of people, who have not been in existence before, to manage the investments of cooperative societies in Kenya even though they will not be members. If you look at this particular amendment, you will realise that it is creating a situation where we will have a new set of cooperative members who are not members by law but who will have been given roles to manage and drive cooperative societies in this country. It will disenfranchise the organic members of the cooperative movement. Therefore, to that extent, when we get to the Committee of the whole House, I will be urging Members that we reject the clause on social impact members. The same applies to the institution of the SACCOs Act 2008. We dealt with this Bill last week and we amended it in its fullness. It was introduced by the Chair. I think it is still going through the ranks of law- making in the House but we did not see this amendment. Again, in this amendment, they introduce the same thing – the social impact members – who have been given excessive powers of being the only ones to deal with special funds. They are the only ones who will have powers to determine the composition of the investment committees. In fact, the amendment allows them to choose four people who will be in charge of investments. I have dealt with SACCOs for a long time. I am a member of Mwalimu SACCO, which is the biggest not only in Kenya but in Africa. Mwalimu SACCO has an investment wing which is being run by the leadership of the society. Two basic characteristics define the cooperative movement in Kenya: Firstly, they are operated on democratic values. Secondly, it embraces equality of all members. For the first time in the history of the cooperative movement in Kenya, we are introducing a group of people called social impact members to go to Mwalimu SACCO – which we have managed all these years – and start managing its investments. The Bill further proposes the type of people who will sit in investment committees of the SACCOs. It says that for one to sit in an investment committee, one must have a degree in economics, finance, law or an adequate field from a recognised university. We have lived with economists for a long time in this country. Even Adam Smith and Keynesian, who jointly crafted the Marshall, have not been able to run cooperative societies the way the members themselves have been able to run them. Why do cooperative societies now have to be managed by groups called social impact members? The investments of cooperatives are enormous. Mwalimu SACCO alone has estates in this country. There are buildings in all towns owned by SACCOs. Why do we now have to succumb to this amendment? I urge the Members of this House to reject the particular amendment seeking to introduce social impact members in cooperative societies. 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."
}