As the year ends, we would like to thank all our readers, advertisers and supporters for staying with us. Investment News believes in motivating investors to invest in Kenya. We appreciate the importance of Foreign Domestic Investment. Kenya must work hard to establish conducive climate for investors.
Conducive climate means effective and fair regulation of trade and business. It means developing laws that do not hinder trade. It means fighting against corruption even if it means borrowing a leaf from the Chinese where the laws are so severe that those caught engaging in the evil practice would rather commit suicide. (We all heard of the recent case of the mine owner who drowned himself rather than wait for the law to start its process).
Above this we also believe in the Kenyan investor. We believe that the Kenyan investor – the so called SMEs that provide 98% of jobs and incomes of most countries in the world. They can develop this country in record time if the government recognizes their role and enables them to achieve much more. And we believe Savings and Credit Cooperative Societies (saccos) are the best vehicle through which SMEs can be developed and their power harnessed.
The beauty of cooperatives – read saccos — is that they themselves can be investors. Many of the saccos are so large they rival banks. Their assets also rival those of the banks. And their money often stays idle ready for use. What if the government got them to invest this excess money in large scale development projects such as funding the Konza Techno City, mining coal in Kitui, harnessing geothermal power in Olkaria or even in heavy construction projects? Other countries have used cooperatives to develop. They have engaged them in research for medicines, to establish large scales trade and business concerns. Where one cooperative cannot raise the amount of money required, a consortium of cooperatives can.
Secondly saccos are sources of low interest investment finance for their members to expand their businesses. Expensive capital is the dilemma and limiting factor in business and trade. By enabling their members financially, Saccos are taking off the most important problem for the businessman or woman.
Finally saccos are an important channel of wealth distribution. They are open to all Kenyans. Indeed, most Kenyan would not be where they are, if it wasn’t for the saccos.
In the coming year, we hope the government will recognize this silent economic power, find methods to harness its financial might and start moving on the road to developing the country while spreading our wealth the Chinese way.
Keep reading Investment News and have a Happy and Prosperous 2016!