The government targets to manage appointment of sacco directors and restrict their term limits as part of reforms to improve corporate governance in the entities that recently hit headlines for the wrong reasons, including embezzlement of members’ savings and failure to refund share capital of those who exited.
The Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development says the sacco-subsector which holds over Sh1 trillion worth of assets will also be required to deploy multiple auditors to forestall incidences of bias which result in financial statements not reflecting the true state of financial health of the saccos.
