By David Kipkorir
The Cooperative movement welcomed the commitment to restore the ministry, saying such a move will encourage transformative changes in the sector. With Simon Chelugui having been nominated as the preferred Cabinet Secretary to take over this crucial docket, sector players are upbeat things are looking up at last.
During his swearing-in ceremony recently, President William Samoei Ruto announced the establishment of the Ministry for Co-operatives and Small and Medium-Sized Enterprises (SMEs), a subject that till date is being shepherded by the Ministry of Agriculture, Livestock, Fisheries and Cooperatives.
For too long, Cooperative leaders pleaded with then President Uhuru Kenyatta to set up an autonomous ministry for the sector to improve its fortunes.
The leadership believed that the relegation of affairs of the Cooperative movement to a department in the larger Agriculture ministry had stifled growth over the years.
Many are now glad to hear about the intent of the government to restore the ministry in a move to make the sector more effective and efficient, allocating space to the sector within the overall government structure.
This is a very important decision which will have far reaching consequences and needs considered thought and action.
The reality is that cooperatives are different, having unique jurisdictions and work requirements with other ministries and departments.
The growth of cooperatives mirrors the actual needs of the country. The early cooperatives were an important socio-economic mechanism where the combined capital and capabilities from individuals of similar interest from diverse backgrounds helped individuals to uplift their living standards.
Given their uniqueness, they need to be distinctively acknowledged by the government in as much as they have a potentially important role in the transformation of the socio-economic life of people in urban and rural communities.
The Cooperative sector, as enterprises, deserve equal treatment with other economic sectors, in as much as they have their distinctive structures that are member-driven, hence a unique sector that is well integrated in communities and built from the ground up.
Cooperatives are prevalent in all sectors of the economy (agriculture, banking, consumer, health, education, housing, insurance, services…). Their role then should be considered not just in their predominance but also in emerging areas where they can play an important role.
The sector is seen as an effective contributor to national development and has been tasked with increasing its contribution to the Gross Domestic Product (GDP) in Kenya.
The participation of cooperatives is seen in high value economic sectors such as finance, wholesale and retail, tourism, health, agriculture, farming, community, innovation and tele-communications, and renewable technologies.
Despite this diversity of business activities, the outgoing government provided oversight of cooperatives through the Department of Cooperatives in the Ministry of Agriculture, Livestock, Fisheries and Cooperatives, a move sector pundits asserted it subdued the operations of the movement.
They questioned the placement of cooperatives within a department in Agriculture, given the strong engagement of the movement in the services sector.
Indeed, representatives of cooperatives were the first to question this organizational structure, as they believe that it does not accurately reflect the diversified nature of the cooperative movement.
Now as the captain of the cooperatives, the new dispensation will be held accountable for that mission and responsible for the lives and welfare of Kenyan cooperators.
There’s no crystal ball when it comes to the policy direction of incoming administrations, but the next five years could signal a positive direction for the general cooperative movement if full autonomy is granted.
Promise of autonomy a shot in the arm for Cooperative sector
By David Kipkorir
During his swearing-in ceremony recently, President William Samoei Ruto announced the establishment of the Ministry for Co-operatives and Small and Medium-Sized Enterprises (SMEs), a subject that till date is being shepherded by the Ministry of Agriculture, Livestock, Fisheries and Cooperatives.
The Cooperative movement welcomed the commitment to restore the ministry, saying such a move will encourage transformative changes in the sector. With Simon Chelugui having been nominated as the preferred Cabinet Secretary to take over this crucial docket, sector players are upbeat things are looking up at last.
For too long, Cooperative leaders pleaded with then President Uhuru Kenyatta to set up an autonomous ministry for the sector to improve its fortunes.
The leadership believed that the relegation of affairs of the Cooperative movement to a department in the larger Agriculture ministry had stifled growth over the years.
Many are now glad to hear about the intent of the government to restore the ministry in a move to make the sector more effective and efficient, allocating space to the sector within the overall government structure.
This is a very important decision which will have far reaching consequences and needs considered thought and action.
The reality is that cooperatives are different, having unique jurisdictions and work requirements with other ministries and departments.
The growth of cooperatives mirrors the actual needs of the country. The early cooperatives were an important socio-economic mechanism where the combined capital and capabilities from individuals of similar interest from diverse backgrounds helped individuals to uplift their living standards.
Given their uniqueness, they need to be distinctively acknowledged by the government in as much as they have a potentially important role in the transformation of the socio-economic life of people in urban and rural communities.
The Cooperative sector, as enterprises, deserve equal treatment with other economic sectors, in as much as they have their distinctive structures that are member-driven, hence a unique sector that is well integrated in communities and built from the ground up.
Cooperatives are prevalent in all sectors of the economy (agriculture, banking, consumer, health, education, housing, insurance, services…). Their role then should be considered not just in their predominance but also in emerging areas where they can play an important role.
The sector is seen as an effective contributor to national development and has been tasked with increasing its contribution to the Gross Domestic Product (GDP) in Kenya.
The participation of cooperatives is seen in high value economic sectors such as finance, wholesale and retail, tourism, health, agriculture, farming, community, innovation and tele-communications, and renewable technologies.
Despite this diversity of business activities, the outgoing government provided oversight of cooperatives through the Department of Cooperatives in the Ministry of Agriculture, Livestock, Fisheries and Cooperatives, a move sector pundits asserted it subdued the operations of the movement.
They questioned the placement of cooperatives within a department in Agriculture, given the strong engagement of the movement in the services sector.
Indeed, representatives of cooperatives were the first to question this organizational structure, as they believe that it does not accurately reflect the diversified nature of the cooperative movement.
Now as the captain of the cooperatives, the new dispensation will be held accountable for that mission and responsible for the lives and welfare of Kenyan cooperators.
There’s no crystal ball when it comes to the policy direction of incoming administrations, but the next five years could signal a positive direction for the general cooperative movement if full autonomy is granted.
