The Marvels of KUSCCO: Championing SACCO Growth in Kenya

Cooperative financial institutions play a pivotal role in financially including Kenyans and catalyzing bottom-up economic development. As the apex organization representing SACCO interests, the Kenya Union of Savings and Credit Cooperatives (KUSCCO) spearheads advocacy, capacity building and service innovation. During a 5-day exposure visit to study KUSCCO’s best practices, I gained insight into their impressive programs uplifting thousands of SACCOs.

Origins and Scale

Founded in 1973 under the supervision of Kenya’s Ministry of Cooperatives, KUSCCO today oversees 4000+ SACCOs contributing over 33% to the national GNP. From humble beginnings, KUSCCO now operates from a modern 35-story headquarters exemplifying their growth. Through visionary leadership, they transitioned from relying on government resources to diversifying revenue via member subscriptions, training fees and stakeholder partnerships – ensuring self-sustainability.

Key Mandates and Services

KUSCCO focuses on two pivotal roles – advocacy and service provision for member SACCOs including:

Advocacy

• Policy formulation
• Taxation consultations
• Licensing and regulatory guidance

SACCO Services

• Training programs – from front desk to CEOs
• IT infrastructure
• Central Finance Fund (lending)
• Cooperative banking access
• Housing finance
• Insurance services

This comprehensive support empowers SACCOs to overcome legislative, financial and capacity barriers.

Governance and Collaboration

member SACCOs elect 15 Board directors and contribute shares to collectively own KUSCCO. They complement this governance by collaborating with:

• Government agencies
• SACCO Societies Regulatory Authority (SASRA)
• Cooperative Bank of Kenya (60% stake)
• National Housing Corporation

Uniting public sector policymakers, regulators and financing institutions creates a conducive ecosystem for SACCO advancement.

Takeaways for Uganda’s SACCOs

KUSSCO’s expansive vision, governance and programs offer inspirational lessons for UCSCU as the pinnacle body for SACCOs in Uganda including:

Establish Strong Funding Channels

Attaining self-sustainability using member fees and profitable subsidiaries secures KUSCCO’s operational capacity to serve SACCOs long-term.

Close Public-Private Collaboration

Synergizing policymaking, regulation and market actors facilitates sector-wide strategy alignment.

Offer Holistic Capacity Building

Comprehensive training and advisory services spanning governance, operations and strategy empowers SACCO leadership to overcome barriers.

By excelling across mandates from advocacy to service innovation, KUSCCO fructifies the cooperative financial model to enrich socioeconomic welfare for citizens nationwide. Their blueprint provides considerations for UCSCU in uplifting Uganda’s SACCO ecosystem.