Let Saccos embrace term limit for directors

During public participation and validation meetings of the then draft Cooperatives Bill 2021, a proposal to cap term limits for directors was shot down.  

The task force undertaking the exercise then resolved that the clause be expunged and the decision on terms left to individual cooperatives as per their by-laws. 

Leaders of Saccos who swamped the sessions questioned the rationale behind Clause 58 (2) of the Bill which proposed a three term limit for the chairperson of three years each.

The chairperson would then take a break of six years if they hoped to bounce back. 

Clause 58(4) had also proposed a limit in relation to age and had capped it at 70 years.

The Bill, which had been mooted in 2018 was republished on November 25th, 2021 and tabled in Parliament on November 29th, 2021. Before that, the Court of Appeal in Civil Appeal No. E084 of 2021 had nullified the Sacco Societies (Amendment) Bill 2021 for want of participation by the Senate as provided for in Article 109 (4) of the Constitution.  

While the term limit may have been shot down during the public participation stage, it still provides hope that Saccos can still affix a term limit by amending their individual by-laws.  

In my own Sacco, Sheria Sacco, a motion moved at the 2022 Annual Delegates Conference to entrench term limit of its directors with the option of a director taking a break after serving a consecutive two terms, was mooted. 

Unfortunately, again, my Sacco rejected the motion by the force of numbers.

However, a number of other Saccos have since incorporated term limits in their by-laws, and have thus far shattered the narrative that term limits would kill the movement. 

I still believe, on the basis of positive returns of democratic culture, that term limits will not only ensure better governance of the Saccos but also ensure directors are accountable during their terms.  

Across the country and over the years, some directors have used their long spells in their Saccos to entrench themselves, build a personality cult around them and in the process create a false narrative that they are the only ones that can lead Saccos to growth. 

And because of this, Saccos have failed to inject or absorb new, modern and transformative ideas to take them to the next level.

In the long run, the fortunes of these Saccos have dwindled when they could have blossomed at the force of competing ideas. 

Besides leading to better corporate governance, term limits would also sync Sacco governance with modern democratic practice of open governance, accountability, transparency and inclusion of all. 

The future of the Sacco movement is highly pinged on sound corporate governance which adopts modern management systems taking on board modern values.

The balloon of personality cults was deflated long time ago, and was finally buried in 2010 when Kenya adopted a modern and democratic Constitution for it then generation and future generations. 

All institutions of governance have since then been opened up to thrive democratically, to welcome new ideas, include all in governance and to accept ideas of accountability, transparency and inclusion among other national values. 

Saccos cannot, and should not be left behind. The future will look at the past with cruelty if the present does not look into the future with hope by complying with modern day movement practices.  

Law should evolve to greet and embrace the future in accordance with modern day trends.

Having defied Covid-19 pandemic to post positive results, the Sacco movement in Kenya is largely expected to shape the economy in the coming days.  

It is time to entrench term and age limits in Saccos.  

The writer is a lawyer and student at Kenya School of Law’s Advocate Training Program, and delegate of Sheria Sacco