- The proposed law will enhance transparency, improve accountability and embrace digital technology to make cooperatives more efficient and responsive to members’ needs.
- The Bill, together with ongoing sector reforms will strengthen public confidence by promoting sound governance and safeguarding members’ deposits
President William Ruto is expected to sign the new Cooperative Bill into law within a month as part of the government’s sweeping reforms aimed at modernising the Co-op sector, strengthening governance and safeguarding members’ savings.
Speaking at the 104th Ushirika Day celebrations at Uhuru Park, Nairobi, Deputy President Kithure Kindiki said the proposed law will enhance transparency, improve accountability and embrace digital technology to make cooperatives more efficient and responsive to the needs of millions of members nationwide.
Kindiki explained that the reforms are part of the Kenya Kwanza administration’s broader strategy to position the cooperative movement at the centre of the country’s economic transformation agenda. “Within a month, the Bill will be signed into law by the President so that we can modernise this sector, improve transparency and governance as well as make it digitally conversant,” he said.
He noted that the establishment of a standalone Ministry of Cooperatives and MSMEs Development demonstrates the government’s commitment to revitalising the sector.
The Cooperatives Bill, together with ongoing reforms in the Savings and Credit Cooperative (Sacco) sector, will strengthen public confidence by promoting sound governance and safeguarding members’ deposits.
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Kindiki underscored the critical role cooperatives have played in improving livelihoods by helping farmers access better markets, enabling workers to save and obtain affordable credit, and supporting families to educate children, build homes and establish businesses. He said the government is keen on creating a modern legal and regulatory framework that will enable cooperative societies to grow, compete effectively and deliver greater value to their members.
“Our goal is to build cooperative institutions that are transparent, financially sound, professionally managed and resilient enough to drive inclusive economic growth and support the successful implementation of the Bottom-Up Economic Transformation Agenda,” he said.
The Deputy President also challenged cooperatives to attract more young people and women into membership and leadership positions, saying their participation is key to the sustainability of the movement. “We must encourage the youth to keep this tradition of joining the cooperative movement to be able to succeed in business and other ventures,” he added.
Kindiki noted that sound governance and strong regulation are essential to protect the savings of more than eight million Kenyans who have entrusted Saccos with deposits exceeding KSh1 trillion. He said cooperatives are well placed to support flagship government programmes, including increasing agricultural productivity, strengthening MSMEs, expanding affordable housing, supporting Universal Health Coverage, and advancing the digital economy.
By Masaki Enock
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