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Fixing the system : Inside the SACCO Reforms
Kenya's #1 newsletter among business leaders & policy makers
In today's newsletter; Kenya’s SACCO reforms, sparked by years of creative accounting and dividend-fueled delusion, aim to impose order on a sector long allergic to accountability and riddled with rogues.
Welcome to today's newsletter edition. We have compiled the most insightful business stories to kickstart your weekend… I am Brian from The Kenyan Wall Street.
FIXING THE SYSTEM : Can Kenya's SACCO Reforms Rebuild Trust?
Years of fraud, falsified profits, and reckless borrowing to fund dividends have left Kenya’s SACCOs member-driven savings and credit cooperatives on shaky ground. In response, the government has launched sweeping reforms, including a five-member legal review panel and a new transition board to restructure KUSCCO, the sector’s troubled umbrella body. Here are the assets that will be sold to recover the lost money from the Central facility…
The proposed Cooperative Societies Bill, 2024 grants unprecedented oversight powers to the Commissioner for Cooperative Development, including the authority to dissolve boards and enforce International Financial Reporting Standards. A key aim is to end the dangerous cycle where SACCOs borrow to appear profitable, drawing in new members under false pretenses.
By mandating stricter financial discipline and more transparent reporting, officials hope to restore confidence in a sector that supports over 6.8 million Kenyans. Still, observers wonder whether these reforms will stick—or be buried under the same institutional rot they aim to fix. Here are the reforms >>>>>
Today's Poll
Do you think the government has the capacity and will to tackle the mess in SACCOs? |
THE AFRICA CONSTRUCTION LAW CONFERENCE: Where Are Legal Hiccups And Feasibility Gridlocks?
It was grey and pallid Thursday morning, but a lucid discussion was taking place behind the walls of the Emara Ole Sereni Hotel. Hundreds of delegates — mostly legal professionals — pondered hard truths: 90% of infrastructure projects across Africa collapse at feasibility. The 5th Africa Construction Law Conference kicked off to untangle why this was the case. After a warm welcome from Mr. Ngo-Martins Okonmah, founder of this distinguished convention, different panels discussed the following:
The Core Challenges
• Feasibility Failures – Joana Brandão, a Lisbon-based partner, called it “the infrastructure paradox.” Despite funds and need, most projects never reach financial close. Unrealistic projections, weak risk models, and poor preparation stall nearly all at inception.
• Late Payments Crisis – Contractors across the continent wait over 180 days for payments, paralyzing operations. A London barrister, Abdul Jinadu, led a panel proposing project bank accounts, payment guarantees, and urgent contract standardization.
• Structural Deficits in Kenya – Shiv Arora, CEO of Superior Homes, noted the absence of feasibility studies and chaotic cash flow planning as Kenya’s unique culprits. Informality dominates; quality assurance mechanisms are often absent.
It has been five years of collective efforts, growth and community. In 2021, we began this journey with a vision to promote development and dissemination of construction law knowledge across Africa
Legal Gridlocks and Policy Whiplash
Frequent political regime changes undermine continuity. Each shift brings new policies and discarded infrastructure plans, eroding investor confidence. Arbitrations are resisted, contracts often unenforced, and without legislative backbone, trust crumbles.
Towards Solutions
• Training over 200 professionals in construction law
• Promoting sustainable project models rooted in integration, innovation, and inclusivity
• Exploring currency hedging strategies to counter macroeconomic volatility
The Road Ahead
The conference ends with awards and wine, but what lingers is a sharpened awareness: Africa’s construction future will not only be laid in concrete but also in law. Read more here »»»»»
There is an infrastructure paradox in Africa. Despite available funds, large pipeline and clear need, few projects reach financial close. There is an 80% drop off rate at planning stage.
U.S TARIFFS: Africa On The Edge…
As Washington tightens its grip with sweeping tariffs, African Development Bank President Akinwumi Adesina warns of a looming storm: weakened currencies, rising inflation, and crippling debt burdens across a continent already stretched thin. With 47 African nations in the crosshairs and USAID cuts compounding the blow, the economic reverberations may run deep. Adesina calls for strategic diplomacy and faster integration via the African Continental Free Trade Area to counterbalance the threat. Yet amid the tension, he remains bullish on Africa’s promise—its youth, resources, and potential to feed a hungry world. Read more »»»»»
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Source : NSE
OPINION
DR. KILI : How We Can Leverage Domestic Capital for PPP Financing
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Yesterday's Poll Results
Do you think Family Bank is in a good financial position to be listed at the NSE?
🟩🟩🟩🟩🟩🟩 Yes (80%)
🟨⬜️⬜️⬜️⬜️⬜️ No (20%)
In certain businesses, growth means you either take bad clients, excess risk, or too much leverage
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