By Sammy Chivanga
The State Department of Co-operatives is rooting for a Covid-19 response team to mobilise up to Sh1 billion kitty to support members of co-operative movement and their families as coronavirus continues to cause layoffs and salary cuts.
A concept note from the state department shows the unit wants to put up non-clinical emergency response plan akin to that of the national emergency response fund, but to specifically serve co-operative sector.
This will be crucial for the co-operative movement members given that the tough economic times facing many sectors such as aviation, hospitality and tourism poses survival risks to families.
The State department says the Co-operatives’ fifth principle that focuses on education, information and training as well as the seventh principle on concern for the community means that the sector cannot take a back seat.
“The sector is obligated to join efforts with the national and county governments to mitigate the spread of this pandemic and manage its impact in the sector and the economy at large,” reads the concept note in part.
“The sector will focus on non-clinical activities and mobilisation of the necessary financial resources to support in minimising the potential vagaries of Covid-2019 in the sector and the general public.”
Part of the non-clinical activities will be working on reducing the spread of the Covid-19 pandemic in consultation with the Ministry of Health, and relaying government communications on safety measures to co-operative societies’ members.
The activities will be co-ordinated by the Co-operative Coronavirus Response Committee (CCRC), which will be charged with providing strategic and technical leadership in the sector to navigate through the pandemic.
The response team will help address shortage of food, unemployment, schooling challenges, potential tensions and resultant unrests among co-operative movement members and the general community.
The state department says this is the moment for the global co-operative family to review its commitment to its principles and values as a third force in economic development.
Kenya continues to witness rising cases of the coronavirus since the first case was reported in the country on March 13.
Coronavirus cases have soared above 4374, being the highest in the East African region as government warns that the disease has hit community transmission phase and will require strict adherence to social distancing measures to contain it.
This has impacted the pace of growth in the co-operative movement, just like it has pricked the rest of financial sector players such as banks, as state extends curfew and containment orders.
Kenya has more than 24,000 registered Co-operative societies and a membership of over 14 million having mobilised savings of over Sh640 billion or about a third of the national savings.
The State department notes that many co-operatives are largely in the rural areas with most of its membership drawn from the bottom-of-the-pyramid.
“This has led to staff lay-offs, which would have far reaching ramifications to the co-operators. The Co-operative sector’s support will target these populations as we also endeavour to reach out to the general populace through distribution of survival kits,” it adds.
The survival kits will include rice, beans and green grams-each two kilogrammes and one litre of cooking oil accompanied with two packets of maize floor. The kit will also come with face masks and soap.
The sector intends to provide the survival kits to 500,000 co-operative households directly affected by the pandemic through loss of income.
“Information on the targeted beneficiaries will be obtained from the affected co-operative societies through whom the survival kits would also be channelled,” reads the concept note.
This is expected to complement other moves being conducted through the national Covid-19 response fund that has marshalled over Sh2.56 billion from corporates and individuals.
