[Elvis Ogina.Standard]The Government is formulating a policy that will enforce merger of saccos, as weak liquidity and tough accounting rules begin to bite. There are currently 12,400 savings cooperatives in the country, according to Commissioner for Cooperative Development Mary Mungai. “We are seeing a lot of duplicity of goals and membership within Saccos, and this has weakened the cooperative movement. Mungai’s sentiments came just after the Sacco Societies Regulatory Authority issued 11 savings societies with restricted licences for failing to maintain the prescribed core capital of at least Sh10 million. Non-performing loansHe said Saccos, especially those that draw their membership from farmers, are hardly prepared for the rules.

Source: Standard Digital September 19, 2018 21:00 UTC