Nairobi, Jan. 8 -- Co-operative societies have been cautioned over the growing practice of placing members' funds in unregulated firms, with the regulator warning that the trend is exposing savers to financial risk.

The Commissioner for Cooperative Development David Obonyo said in a circular that some co-operatives are exposing members' funds to a "significant risk" by investing in unregulated institutions -a practice that is in breach of the Cooperative Societies Act and related regulations.

"The State Department for Cooperatives has noted with concern that some cooperative societies are placing members funds in unregulated institutions, thus posing a significant risk to members' funds," said Mr Obonyo in a circular issued on December ...