State to partner with Saccos in new phase of Hustler Fund

REFORMS:  The government plans to partner with savings and credit co-operative societies (Saccos) as the preferred vehicles for development.

Co-operatives Cabinet Secretary, Simon Chelugui said the launch of Biashara loan will provide a pathway for Saccos to partner with the government.

The new digital product is a revolving fund that provides credit to small business and individuals who have no collateral or formal banking history.

Chelagui said the product will deepen financial inclusion and access to the majority at the bottom of the pyramid.

“I urge sacco leaders to take advantage of this affordable facility to benefit your communities,” he said during the 33rd annual delegates meeting to celebrate the opening of Nafasi DT Sacco’s new branch in Kayole, Nairobi.

Chelagui lauded the Sacco for coming up with innovative ways to meet the needs of its members including building up the share capital of the society, asset base, deposits and loans portfolio.

This is besides the sacco’s wide range of products and services to cater for the diverse membership and clientele.

Business prosperity

“I note with satisfaction the society’s continued rise in membership 40 per cent of whom are associated with small and micro enterprises and chamas,” said Chelugui, adding that leaders of Saccos should strive to provide a suitable environment that allows for business prosperity.

The CS revealed that his ministry has put in place a raft of robust reform measures aimed at creating a conducive environment for co-operatives to conduct their businesses. “These includes the review of the Co-operatives Bill which is at an advanced stage of enactment into law,” he said. Additionally, Chelagui said the amendment of the Sacco Societies Act - to create the Central Liquidity and Shared Services Facility for inter cooperative short-term borrowing is also ongoing. It will make it easier to access the National Payment System and provide common shared services.

“The Co-operative business model is best placed to facilitate financial deepening and access in the implementation of the bottom-up economic model to reach sections of the community not fully integrated in financial ecosystem,” he said. Chelugui noted that the model resonates well with the bottom-up economic approach, which he pointed out, enables pooling of the scarce resources for the economic growth.