At the coast, Cabinet Secretary Oparanya draws a line in the sand, demanding an end to the "boardroom cartels" that threaten Kenya's savings culture.

The era of the "briefcase SACCO" is over. This was the unequivocal message delivered by Cooperatives Cabinet Secretary Wycliffe Oparanya at the 11th SACCO Leaders Convention in Mombasa today. Addressing over 600 industry captains at the PrideInn Paradise Beach Resort, Oparanya laid out a new governance charter intended to sanitize a sector that holds over a trillion shillings in Kenyan assets.

The Cooperative movement is often described as the "sleeping giant" of the Kenyan economy, but recent high-profile collapses of depositor-taking institutions have shaken public confidence. Oparanya's speech was a direct response to this crisis of trust. "The cooperative sector must uphold accountability," he thundered. "We cannot allow the savings of coffee farmers and teachers to be squandered in boardroom deals. Transparency is not optional; it is mandatory."

The Digital Imperative

Beyond governance, the CS pushed for a radical digital transformation. He argued that the traditional, paper-based model of many SACCOs is a breeding ground for inefficiency and fraud. He urged societies to adopt core banking systems that allow members to track their funds in real-time, much like the commercial banking sector.

• Transparency: Real-time member access to statements.
• Efficiency: Automated loan processing to reduce "human error" and corruption.
• Security: Cyber-security protocols to protect member data.

Industry Response

The ultimatum was met with cautious optimism by industry leaders. David Mategwa, the National Chairman of the Kenya Union of Savings and Credit Cooperatives (KUSCCO), welcomed the government's support but called for a "collaborative approach" to regulation. "We need unity within the movement," Mategwa said. "Internal systems must be strengthened, but we also need a conducive regulatory environment to thrive."

Protecting the "Kadogo" Economy

Principal Secretary for MSMEs, Patrick Kilemi, reinforced the government's stance, noting that SACCOs are the primary financiers of Kenya's small businesses. "When a SACCO fails, a thousand small businesses die," Kilemi noted. The convention, which runs through the week, is expected to produce a series of resolutions that will form the basis of new regulations for the sector. For the millions of Kenyans who bank on the cooperative model, Oparanya's tough talk offers a glimmer of hope that their hard-earned shillings are finally being watched over.