Chelugui takes over as Cooperatives& MSMEs CS, outlines agenda for sector


By Azael Masese
Simon Kiprono Chelugui has taken over the Cooperatives and Micro, Small and Medium
Enterprises (MSME) Ministry and promised to address mismanagement in cooperatives.
Chelugui takes over from Peter Munya, who was in charge of Agriculture, Livestock, Fisheries
and Trade.
During the handing over ceremony held at the NSSF Building, Chelugui promised to seal
loopholes that have seen farmers or members cheated out of their investments and to ensure such
members get a return on their investments.
Chelugui vowed to build the vibrant sector and underscored the role of cooperatives in enhancing
housing, transport and food production in the country.
The CS called on the need to strengthen corporate governance and the leadership around the
cooperative movement.
“I’m aware there are pending policies and bills before Parliament that I need to work on,” he
Some of the pending policies and bills include the National Cooperative Policy, Deposit
Guarantee Fund and the Central Liquidity Facility.
The Deposit Guarantee Fund seeks to compensate members in case of the collapse of Saccos
while the Central Liquidity Facility will offer Saccos an opportunity to lend to each other.
Chelugui identified coffee production as one of the sectors that has suffered due to poor
management and promised to address the challenges facing it.
“Kenya was the best producer of coffee in Africa and the third in the world but poor leadership
led to the collapse of the sector,” said Chelugui.
He regretted that poor management of the coffee cooperatives led to the declining production of
coffee from about 140,000 metric tonnes to the current less than 40,000 tonnes.
Chelugui promised to work with new Kenya Cooperative Creameries (KCC) and New Kenya
Planters Cooperative Union (KPCU) to solve the challenges afflicting the societies.
The former Labour and Social Protective Cabinet Secretary said that he will partner with
individual players such the ministries of trade and external organizations in East Africa for trade
in order to realize its full potential.
“I will work using an open door policy to help take to greater heights the cooperative
movement,” he said.

His predecessor Munya lauded the creation of the Cooperatives and MSME Ministry, adding that
Kenya is on a transformation agenda and is largely driven by small businesses and cooperatives.
The ceremony was attended by State Department for Cooperatives Principal Secretary Ali Noor
Ismail, Cooperative Commissioner David Obonyo, Sacco Societies Regulatory Authority (Sasra)
CEO Peter Njuguna, and Sasra Board Chair George Murathe.

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