EDITORIAL: Protect Sacco savings at all costs

Saccos remain one of Kenya's most successful home-grown financial institutions.

Built on the simple principle of members pooling their savings, they have transformed millions of lives by providing affordable credit for school fees, medical expenses, housing, farming, business expansion and the purchase of motor vehicles.

At a time when bank loans remain beyond the reach of many, Saccos have become the financial backbone of ordinary Kenyans.

The sector's success is reflected in its numbers. Kenya boasts more than six million Sacco members, with assets exceeding Sh1 trillion. Every year, members also receive dividends and interest on deposits, reinforcing the culture of saving and demonstrating that cooperative finance works.

It is precisely because of this success that the proposed Sacco law amendments have generated widespread concern. Mixed messages, misinformation and grey areas in the Bill have left many members fearing for the security of the savings they have built over many years through sacrifice and discipline.

The government cannot afford to ignore these concerns. It must embark on an aggressive public education campaign to explain the proposed changes and reassure members that their deposits will remain secure. Any reforms should strengthen, not weaken, public confidence.

Saccos should continue investing members' funds prudently to grow returns. However, every investment must be transparent, accountable and undertaken with the full knowledge and approval of members. The hard-earned savings of millions of Kenyans must never be placed at unnecessary risk.