Why Cooperative Societies Should Adopt Sustainable Reporting
By Admin
Savings and Credit Cooperative Organizations (SACCOs) in Kenya have played a pivotal role in mobilizing savings, promoting financial inclusion, and strengthening the country’s cooperative movement. As the sector continues to grow, experts are calling on cooperatives to embrace sustainable reporting as a strategic tool for climate risk management, transparency, and building customer confidence.
Aligning With Emerging Global Trends
The Co-operative Alliance of Kenya (CAK) Chief Executive Officer, Daniel Marube, emphasized that adopting sustainable reporting is no longer optional but a necessity for cooperatives seeking to remain competitive.
“Cooperative societies are not in isolation as they are in competition with commercial banks in the deposit-taking business. Financial cooperatives must widen their business approach by focusing on emerging issues, for example, the growing youth generation,” Marube said during the opening of a week-long Audit, Governance and Risk Management Forum for Cooperatives in Voi, Taita Taveta County.
Marube noted that incorporating sustainability into business development models will open up new opportunities, particularly in addressing the needs of young people, who account for 70% of Kenya’s population.
Lessons from the Banking Sector
Commercial banks and listed companies have already set the pace by publishing sustainability reports that focus on climate change, inclusive growth, and responsible business practices. Cooperative societies, therefore, risk falling behind if they do not adopt similar frameworks.
Governance expert Zack Omukalla stressed that sustainable reporting will enhance compliance with both local and international standards, while also strengthening the capacity of SACCO boards.
“Kenyan cooperatives are among the best institutions globally. If they agree to adopt workable reporting, they will achieve impressive results. Sustainable reporting incorporates issues like climate change and enhances members’ confidence,” Omukalla noted.
He added that such reporting should be integrated into broader business plans, spelling out growth strategies, risk management approaches, and environmental stewardship.
Enhancing Transparency and Trust
According to Apstar Sacco Director, Nelly Okendo, sustainable reporting not only strengthens compliance but also enhances transparency in SACCO operations.
“Audit and supervisory committees in deposit-taking SACCOs, if well strengthened and supported, will help in taming emerging challenges. CAK should heighten campaigns on sustainable reporting,” Okendo said.
Building Capacity for the Future
CAK Vice Chairperson, Cyrus Magut, highlighted the importance of continuous training for directors and management teams in cooperatives.
“Through training, managers will be capacitated to adopt good business practices and respond effectively to changing business dynamics,” Magut explained.
A Path Toward Resilient Cooperatives
Sustainable reporting is more than a compliance exercise—it is a strategic tool that enables cooperatives to:
- Manage climate and environmental risks effectively.
- Enhance governance and transparency.
- Build stronger confidence among members and investors.
- Align with global financial and business trends.
- Position themselves as key players in sustainable economic growth.
As Kenya’s cooperative movement continues to serve millions of citizens and mobilize significant savings, embracing sustainable reporting could mark the next big leap in ensuring resilience, inclusivity, and long-term growth.