The Ethics and Anti-Corruption Commission (EACC) has called for urgent reforms in Kenya’s co-operative sector after identifying governance weaknesses and gaps in internal controls that could create opportunities for corruption and misuse of resources.

The commission presented its findings to the State Department for Co-operatives on Tuesday, August 18, after reviewing various operations within the department and several agencies linked to the co-operative sector.

The review covered institutions including the Sacco Societies Regulatory Authority (SASRA), New Kenya Co-operative Creameries and New Kenya Planters Co-operative Union.

EACC said weak oversight and governance systems could expose co-operatives to financial losses and other forms of misuse.

The commission recommended stronger accountability measures, improved oversight and better internal controls to close loopholes that could facilitate corruption.

EACC Commissioner Alfred Mshimba said protecting resources from corruption would ensure more funds remain available for important areas such as education, housing, agriculture and businesses.

The findings come as some SACCO members raise concerns about proposed changes to the way large co-operative societies conduct their general meetings.

Under the proposed delegate system, co-operatives with more than 5,000 members would be represented at general meetings by between 150 and 500 delegates.

Critics of the system have questioned how delegates would be selected and held accountable, arguing that members should understand how the changes could affect their participation in decision-making.

The EACC’s latest recommendations are expected to support efforts to strengthen governance and accountability across Kenya’s co-operative sector and protect the savings and interests of millions of members.