Good governance is how members stay in charge of their own SACCO. It is the structure of who sets the rules, who checks the books, and who runs the business day to day.
Why it matters: A SACCO belongs to its members. Clear governance keeps power in their hands, holds leaders accountable, and stops one group from controlling everything.
The board sets direction
The board is elected by members to govern, not to run daily operations.
Sets policy and approves the strategy and budget.
Oversees management and holds the Manager accountable.
Approves big loans and major decisions within policy.
Governs, but does not handle cash or process transactions itself.
Key committees
Committees give focused oversight and spread responsibility.
Credit or loans committee sets loan policy and reviews larger or unusual applications.
Supervisory or audit committee checks controls independently and keeps the board itself in check.
Committees report to the members, giving an extra layer of accountability.
The AGM: members decide
The Annual General Meeting is the SACCO's highest authority, once a year.
Members elect the board and committees.
Members approve the audited accounts and how surplus is shared.
Members vote on by-law changes and major matters.
Every member has a voice, regardless of savings size.
Governance vs management
Keep the line crisp: the board governs, staff manage.
Board sets the "what" and "why"; management delivers the "how".
Staff run operations; the board does not micromanage.
This separation is itself a control against concentrated power.
In CAMS, board and committee reports pull the figures and loan data they need to oversee performance without touching daily operations.
Quick checklist
[ ] Board elected by and accountable to members
[ ] Credit committee oversees loan policy
[ ] Supervisory or audit committee checks controls
[ ] AGM held; members elect leaders and approve accounts
