NAIROBI, Kenya, Aug 19-The Ethics and Anti-Corruption Commission (EACC) has identified governance and oversight weaknesses within Kenya’s co-operative sector that could create opportunities for corruption, calling for urgent reforms to strengthen accountability and protect billions in sector resources.
The Commission presented its report on the examination of systems in the co-operative sector to the State Department for Co-operatives on Tuesday, highlighting gaps in governance, internal controls and oversight that require corrective action.
The review covered technical and support functions within the State Department as well as key semi-autonomous government agencies, including the Sacco Societies Regulatory Authority (SASRA), New Kenya Co-operative Creameries Limited (New KCC) and the New Kenya Planters Co-operative Union.
EACC Commissioner Alfred Mshimba said closing the identified gaps was critical to protecting resources meant to benefit millions of Kenyans who depend on co-operative institutions for savings, credit and economic opportunities.
“Every resource safeguarded from corruption is a resource available for investment in housing, education, enterprise, agriculture, and the welfare of Kenyan families,” Mshimba said.
The Commission urged the State Department to carefully consider the findings and implement the recommended reforms, warning that weaknesses in governance and internal controls can expose public institutions and co-operative resources to abuse.
Among the key recommendations are strengthening governance and accountability mechanisms, improving oversight and internal controls, and addressing systemic weaknesses that could provide opportunities for corruption.
The report comes as the co-operative sector remains an important pillar of Kenya’s economy, supporting savings, access to credit, agricultural marketing and enterprise development for millions of members.
Weak controls within institutions managing such resources could therefore have consequences extending beyond individual organisations, affecting members, investors and the wider economy.
Principal Secretary for the State Department for Co-operatives Patrick Kilemi welcomed the report and committed the department to reviewing its findings and implementing the recommendations.
Kilemi said the department was committed to working with EACC to strengthen governance, enhance accountability and tackle corruption across the sector.
The two institutions also agreed on the importance of continued collaboration to ensure that the recommended reforms translate into stronger systems and better protection of co-operative resources.
EACC said implementing the recommendations would strengthen institutional resilience against corruption while promoting transparency and accountability in the management of public and co-operative resources.
The reforms are expected to strengthen oversight across the State Department and its agencies while improving safeguards for resources that support the livelihoods and economic activities of co-operative members nationwide.
