Members of cooperative societies are up in arms over proposed law changes that could fundamentally restructure their operations.
The Cooperative Alliance of Kenya issued a statement expressing their opposition to changes proposed on the Cooperative Societies Act and the Sacco Societies Act.
The changes contained in the Miscellaneous Amendment Bill (2018), they said, are punitive and could jeopardise the cooperative spirit.
They maintained that the savings culture common among many Kenyans who are members of saccos, chamas and other organized groups would be eroded.
In particular, they vehemently opposed a change that would bring in non-members referred to as 'social impact members' into the societies.
They argued that this would create a channel for members' savings to be diverted to risky or shady investment ventures.
[caption caption="Henry Rotich"]
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Another proposed change in the bill introduced a new section on the establishment of a special fund dependent on monies received from the social impact members.
Cooperative Alliance of Kenya executive director Daniel Marube hinted at mischief being behind the new laws in a letter to the Clerk of the National Assembly.
He explained that the social impact members would only be allowed to vote in matters that concern them and this would be a contravention of the 'one member one vote' rule that has been a hallmark of the societies.
“These proposed amendments to say the least have the purport and intent to sneak in strangers into the room who not only come to scavenge on the goodwill an institutional set up of Sacco societies but also to attack and wreck the foundation upon which Sacco’s are built,” he declared.
[caption caption="Daniel Marube"]
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