By John Kariuki
It’s a new dawn for Savings and Credit Cooperative Societies (Saccos) for they inched closer to setting up a central liquidity facility to enable them to lend to each other.
This will help the Saccos meet unexpected or unusual short-term cash flow shortfalls.
There’s light at the end of the tunnel after legal framework has been endorsed by Cabinet.
The proposed creation of the Central Liquidity and Shared Technology platform, which has been on the cards since 2016, is expected to reduce the Saccos’ reliance on costly bank loans to maintain monthly statutory cash-flow ratios.
Reacting on this development, the Chief Executive Officer of Mhasibu Sacco Anthony Gichia Kahoru welcomed the monumental step terming it as a new dawn for Saccos.
“This is a going to be a game changer since Majority of Saccos are going to work in synergy. Liquid Saccos will now have an option to expand their portfolio and be able to lend to the ones with a deficit. This has been long overdue because as players we shall also enjoy fairer borrowing rates. This is so because when you have excess funds you can uplift your struggling brother and bring him afloat.”
Mr Kahoru is also happy that there was for public participation and the bill took into consideration the expectations of the industry.
Mr Kahoru concluded by exuding confidence that Kenya will remain at the top position in ranking as the best country in cooperative movement.