Kenya to help South Sudan to set up cooperative movement
April 24, 2006 (NAIROBI) — The Kenya Union of Savings and Credit Cooperatives (Kuscco) is negotiating a contract to teach Southern Sudanese sound saving skills.
According to Kuscco national chairman Jared Odhiambo, the union has been approached by the Sudanese government following its success in Rwanda, where it is helping revive co-operatives in collaboration with the World Council of Credit Unions (Woccu).
Kuscco is helping the $3 million Rwanda co-operative movement to focus on expanding services and access to small savers and producers in the rural areas.
The movement in Rwanda went under following the 1994 genocide, but Kusco has succeeded in reviving the Union des Banques Populaires de Rwanda, which serves over 400,000 members country-wide.
Rwanda’s credit union movement is stronger partly due to the four-year project carried out by Woccu and Kuscco, which targeted 17 pilot credit unions. A post-project survey of the participating unions showed asset growth of 169 per cent, a membership growth of 65 per cent and a healthy solvency ratio.
“Kuscco has been a shining example in Africa. Now, there are plans to move to Sudan and teach them how to manage saccos because the world’s economy relies on them,” he said.
Mr Odhiambo said Kuscco was willing to send expatriates to Sudan to help the country strengthen its savings and credit movement, was affected by the war in the south.
Speaking recently during the Coast Provincial Council meeting in Mombasa, Mr Odhiambo said Kuscco – with savings of Ksh115 billion ($1.5 billion) and Ksh95 billion ($1.3 billion) in outstanding loans – was competent to teach other countries.
“The cross-cutting issues affecting co-operatives in the East African region are similar. They range from governance, inadequate human resources, weak regulations and supervision,” he said.
He said other challenges included limited products and services, low marketing and innovation and poor image.
The move is in line with recommendations made by participants at the 2005 Africa Congress of Saccos held in Rwanda.
During the conference, participants agreed on the need for more training and tools to help them adapt to the changing environment.
Kenya’s sacco movement boasts of a 2.5 million membership in 3,000 co-operatives.
During the 2005 Woccu conference in the Bahamas, Kuscco scooped top position in Africa and seventh overall.
“We also control 34 per cent of the total national savings in Kenya,” Mr Odhiambo said.
It is for this reasons that Kuscco is bidding to host the Woccu conference in 2009. In 2004, Kuscco hosted the East African Regional Association of Saccos conference.
The co-operative movement in Africa has faced numerous operational challenges in the past decade, especially due to sudden government withdrawal from its previous extensive support to rural areas and the negative effects of economic liberalisation.
(East African)