Cooperative sector set for overhaul under new reforms

CHARI SUCHE-KNA

The Government has reaffirmed its commitment to strengthening Kenya’s cooperative movement through legislative reforms aimed at enhancing transparency, sustainability, and public trust.

Speaking during an international cooperative sector meeting in Mombasa that brought together regional leaders and global delegates, the Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises (MSMEs), Wycliffe Oparanya, said the reforms are intended to create an enabling environment for Savings and Credit Cooperative Organisations (SACCOs) to thrive, dismissing claims that the State seeks to control the sector.

“We do not intend as a government to control the cooperative movement, but we want to encourage it to be self-sustaining. The responsibility of the government is to create an enabling environment for the cooperative movement to thrive,” Oparanya said.

The CS noted that ongoing reforms are informed by recommendations from a committee of experts appointed in May last year to address challenges facing the sector, including governance concerns in key institutions.

He said the proposals, some of which require legislative action, are currently under review in consultation with Parliament.

“There has been a lot of misinformation that the government wants to control SACCOs. That is not true. We are putting in place institutions and legislation that will strengthen the movement,” he added. 

The meeting, convened by the African Confederation of Cooperative Savings and Credit Associations (ACCOSCA) also hosted board members from the World Council of Credit Unions, highlighting Kenya’s growing influence in the global cooperative space.

WOCCU Board Chairman, Mark Lawrence, lauded Kenya for hosting the international delegation, noting Africa’s strategic importance in advancing financial inclusion.

“Africa is a very important part of the global cooperative movement. The strength lies in having a single voice globally, and partnerships like the one we have with Africa are critical,” he said.

Global leaders underscored the role of SACCOs as people-centered financial institutions that prioritize member welfare over profit.

Bill Cheney, Chairman of the Worldwide Foundation for Credit Unions, described Africa as a key frontier for cooperative finance.

“Africa is rising. It is the youngest continent on the planet, and cooperative finance offers the best pathway for consumers and small businesses to thrive. We are owned by members, not shareholders, and that allows us to put people first,” Cheney said.

WOCCU President and CEO Elisa McCarter LaBorde, represented at the forum, highlighted a new global data initiative aimed at improving performance tracking and decision making across the cooperative sector.