The Division is mandated to provide an enabling environment through formulation and implementation of policies and guidelines that aim at sustaining financially sound and efficiently managed SACCO Sub-sector.
The Co-operative Business Model is the best vehicle of mobilizing savings among the poor and the middle class. This is informed by Co-operative philosophy of people assisting others.
The Co-operative unique identity compared to other forms of businesses is that the members are co-owners of the enterprise and when the society engages in business, the motivation is to make profit but more importantly is service to members. The profits realized are shared among the members on pro-rata basis as dividends.
The poor are able to access credit using their deposits and security of guarantors as opposed to use of assets as collaterals.
This enables the poor to build up savings and access credit which makes them financial enablers.
The co-operatives have an advantage over other financial institutions due to geographical spread of their membership when compared to banks whose outreach is limited to branch network. Thus making Co-operatives to reach the poor segment of the society more effectively.