Cooperatives and savings societies conducting business in Uasin Gishu County have been challenged to ensure that they comply with Cooperatives and Societies Act to avoid being deregistered by the cooperatives commissioner.
Speaking while meeting the leaders from various cooperatives within Uasin Gishu County, County Executive in charge of Cooperatives and Enterprise Development Esther Mutai said that all cooperatives in Uasin Gishu must move at the same pace hence compliance is key.
She said that a qualified auditor approved by the cooperatives commissioner must audit the societies’ books of accounts.
The CECM noted that that her main focus was to achieve the department’s goals and asked the leaders present to help her in ensuring that all required laws have been adhered to.
She said that all the cooperatives had been given a grace period of up to October this year to ensure that they comply with the law citing that the full force of the law shall be applied to all non-compliant cooperatives.
“I have asked the cooperatives commissioner to enforce the law, which will include closing all bank accounts and deregistering of cooperatives.” Said the CECM.
Mutai further noted that all cooperatives must have complied with the law by the 31St of December this year.
“You must ensure that you have done your annual general meeting, audited your books of accounts so that we move in the same speed as cooperatives in Uasin Gishu County.” Added the department head.
Failure to comply, the CECM informed the leaders that they would not gain access to the budgeted 220 Million to be given out by the department in form of loans.
She challenged the cooperatives to safeguard their properties and loans by insuring them to avert losses in the event of calamities, lamenting that it would be unfair to go to guarantors in the event that the calamity strikes or in the cases of the loss of loved ones.
On the proposed cooperatives amendment, the CECM urged national assembly to consult with stakeholders before passing the laws. Citing that public participation is a key component in the Constitution of Kenya.