Kilifi: Sibanga, Trans Nzoia County: Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises, Wycliffe Oparanya, has urged small and medium business owners to embrace Savings and Credit Cooperative Organizations (SACCOs) to cultivate a savings culture and access affordable credit to grow their enterprises. Oparanya highlighted the significance of SACCOs in providing an avenue for small-scale traders to save, access loans, and build sustainable businesses during challenging economic times.
According to Kenya News Agency, Oparanya warned traders against relying on informal lenders who charge high interest rates, which can undermine livelihoods and hinder business sustainability. Speaking in Sibanga, he pointed out the risks associated with informal savings groups known as ‘chamas,’ where there is a potential for financial loss due to mismanagement.
Oparanya encouraged traders to join SACCOs and make regular savings, emphasizing that even small contributions could accumulate into significant amounts for accessing credit and investment. He highlighted the role of technology in transforming the cooperative sector, allowing members to access SACCO services and conduct transactions through digital platforms.
The CS outlined government initiatives aimed at expanding access to capital for small businesses and young entrepreneurs, mentioning that the Hustler Fund has disbursed over Sh90 billion to 28 million Kenyans, with two million people accessing loans daily. He added that the NYOTA Fund supports young people and encourages them to join SACCOs to foster a savings culture.
Oparanya commended the Cooperative Bank and the Cooperative Insurance Company for providing financial services to cooperative members, which aids small businesses in overcoming capital access challenges. He also noted government efforts to improve the operating environment for small businesses by constructing over 400 markets across the country, providing secure trading spaces with internet connectivity and storage facilities.
The CS emphasized the importance of access to proper business premises, affordable credit, and digital financial services for the expansion of MSMEs, contributing to economic growth. He called on members of the cooperative movement to work together in strengthening SACCOs to support entrepreneurs and communities, thereby contributing to economic stability.
