The Kenyan savings and credit co-operative (Sacco) sector faces significant challenges in establishing standardized hiring practices for senior leadership roles, according to industry stakeholders.
Despite the 2018 establishment of the Kenya Society of Professional Co-operators (KSPC), which aimed to create competency standards for co-operative professionals, the organization lacks legal authority to mandate recruitment guidelines for Sacco boards or management. This gap leaves each co-operative to develop its own criteria for selecting directors and executives.
"What societies prioritize is loyalty and connections within the co-operative network," said Moses Chebor, former CEO of Boresha Sacco. "Internal succession planning is common to maintain stability, though external recruitment occurs when the board deems in-house candidates insufficient." Agnes Munyi, general manager at Bandari Sacco, echoed this sentiment, noting that most boards prefer internal candidates who understand the organization's culture.
While some Saccos, like Stima, emphasize academic qualifications such as MBAs and PhDs for leadership roles, others rely on practical experience and industry familiarity. Chris Useki, Stima's CEO, emphasized the need for leaders with adaptability, emotional intelligence, and the ability to navigate evolving financial landscapes.
Sacco Societies Regulatory Authority (SASRA) data reveals disparities in leadership qualifications. Of 175 licensed deposit-taking Saccos, 71 CEOs hold bachelor's degrees, 63 have master's, and 2 possess doctorates. However, 12 CEOs' qualifications remain undisclosed, and fewer than 15 hold diplomas or certificates. The authority requires a "fit and proper" test for all officers, but enforcement remains inconsistent.
Some Saccos, like Kenya Police Sacco, impose strict financial thresholds for board membership, requiring Sh400,000 in deposits for delegates and Sh1 million for board candidates. These measures aim to ensure financial commitment but raise concerns about accessibility for lower-income members.
Industry experts warn that the absence of uniform hiring standards risks operational instability, particularly during leadership transitions. While KSPC's 2010 regulatory framework outlines CEO responsibilities, its implementation remains fragmented across the sector.
