When East Africans think of corporate governance, the imagination often stretches to urban boardrooms where directors debate strategy and compliance. Yet some of the most decisive governance questions for our region are being played out not in capital cities but in rural trading centres and community halls. Here, Savings and Credit Cooperative Organizations (SACCOs) hold the financial lifelines of millions of households, especially in agriculture, which remains the backbone of our economies.
SACCOs have become critical drivers of financial inclusion. They provide affordable loans, safe deposits, and the liquidity that enables smallholder farmers and traders to sustain livelihoods. In many cases, they serve as the first point of access to finance for those excluded from the mainstream banking system. But this promise is constantly tested by familiar challenges: poor record keeping, insider lending, weak leadership, and sometimes outright mismanagement. The collapse of a SACCO does not just represent a financial loss; it strikes at the very heart of community trust and disrupts agricultural productivity.
This is why governance at the grassroots deserves the same level of seriousness as governance in the corporate towers. Regulation provides a framework, but it cannot substitute for the discipline of accountable leadership. SACCOs thrive on trust, and that trust is earned when leaders are transparent, accountable, and consistent in safeguarding members’ contributions. Good governance here is not about ticking compliance boxes; it is about embedding practices that protect members’ savings and ensure sustainable lending.
The solutions lie in strengthening governance capacity and culture within these institutions. Election processes must be transparent and fair to prevent capture by narrow interests. Leaders need continuous training to understand their fiduciary duty to members, and supervisory structures should be active, not ceremonial. Communities must also be empowered to demand accountability, ensuring that annual meetings, financial reports, and audits are more than rituals. Embedding ethics, transparency, and risk management at the grassroots level builds the resilience of SACCOs, enabling them to play their rightful role in transforming agriculture and improving livelihoods.
Companies Rise or Fall on How Well They Renew Their LeadersFor East Africa to unlock its agricultural potential, SACCOs must be seen not only as financial intermediaries but as governance institutions in their own right. When well governed, they mobilise savings effectively, lend responsibly, and form strong partnerships with development programmes. When poorly governed, they collapse under the weight of mistrust, leaving communities disillusioned and vulnerable.
The call to action is therefore clear: we must rethink governance not as a distant boardroom affair but as a grassroots necessity. Strengthening governance in SACCOs is about more than stabilising cooperative societies. It is about creating trust, empowering farmers, and catalysing inclusive growth from the ground up. Governance at the grassroots is not a side issue; it is the very foundation of East Africa’s economic transformation.
Max Manzi is a Chartered Governance Professional & Advocate, currently serving as the Chief Governance & Legal Officer at aBi Finance Ltd, a wholesale impact finance solutions provider, catalysing the transformation of Uganda’s agricultural finance ecosystem.
