This archive report was first published on 6 July 2021.
Kenya Police Sacco has made significant changes to its leadership structure, aiming to boost its financial standing and leadership.
On February 25, the sacco increased the minimum deposits for members seeking leadership positions, with delegates voting to raise the minimum deposits for a member wishing to vie for election as a delegate from Sh400,000 to Sh700,000.
The minimum deposits for a delegate wishing to stand for election to the board were also doubled to Sh2 million from Sh1 million.
According to David Mategwa, the soft-spoken board chairman, the changes are a form of financial discipline, aimed at weeding out those who see leadership as an avenue to swindle funds.
"The increment is a form of financial discipline. Remember that if a sacco collapses, then the government first attaches the deposits of the top officials. Just like in the village, you must have cows in order to be entrusted with the cattle dip, there must be sacrifices at the leadership of our saccos," Mr Mategwa said.
The changes come at a time when the sacco has set an ambitious target of a Sh50 billion asset base ahead of its Jubilee celebrations next year.
Started in June 1973, the sacco has grown its membership from 690 to 63,009, with a loan portfolio of Sh32.6 billion in the year to December.
Mr Mategwa adds that ahead of next year's Jubilee celebrations, they target to hit 70,000 members.
The State has previously said the biggest challenge facing saccos are weak governance structures, that have left loopholes for unscrupulous leaders to swindle funds and force members down a financial and psychological turmoil.
