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Directive on delegate system bad for Saccos
Kenya National Police DT Sacco delegates follow the proceedings during the annual delegates meeting at Serena Hotel, Nairobi, on February 21.
Savings and Credit Cooperative Organisations (Saccos) were formed to help members save, borrow, and pool resources to improve their livelihoods.
Recently, the Commissioner for Cooperative Development issued a sweeping directive to all cooperatives in Kenya with more than 5,000 members, requiring them to overhaul their governance structures. The move is aimed at strengthening transparency and member representation within Saccos.
According to the circular, all affected Saccos must implement a delegate system for general meetings, revise their bylaws to reflect the new structure, and establish clear communication channels with members. They were given six months to comply.
The directive stipulates that cooperatives with over 5,000 members must adopt a delegate system of representation in their general meetings, with not fewer than 150 and not more than 500 delegates.
The delegate system is meant to make Sacco meetings more efficient and representative, given the logistical challenges of hosting thousands of members at once. By selecting delegates to attend and vote at meetings, the directive seeks to promote orderly governance and ensure greater participation through elected representatives.
However, many members prefer the former system, where everyone participated directly in decision-making, attended meetings, voted for their preferred candidates, and received information first-hand. Members could also question directors directly and get immediate responses.
Another advantage of the old system was networking — a chance to reconnect with old friends and socialise.
The delegate system, on the other hand, limits participation to a few elected representatives who vote for directors on behalf of others. The concern is: what happens if directors manipulate or “pocket” the delegates?
Some Saccos feel the system was imposed on them. I urge the Commissioner for Cooperative Development to withdraw this unpopular system. Sacco members have invested their money and future in these institutions — they deserve a voice in how they are governed.
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