Wycliffe Oparanya, the Cabinet Secretary for Cooperatives and MSMEs, has called on cooperatives to invest in the manufacturing industry to generate more jobs and promote development in the country. In his address, he emphasized that the manufacturing sector has the potential to provide high-quality jobs. However, he pointed out that the sector is currently underperforming in the economy due to a lack of investment and focus from investors.
“I encourage you to invest in manufacturing because it is a critical area that creates more and better jobs,” Oparanya stated. According to the 2023 Saccos Supervisory Report by SASRA, cooperatives are primarily investing in housing, trade, and agriculture. While the overall growth projection for the manufacturing sector is 5.2%, the report indicates that the sector only grew by 2.3%. “This means that, as a country, we are not performing well in manufacturing,” he noted.
The Cabinet Secretary also recognized the significant achievements of the cooperative movement over the years, particularly in establishing independent financial institutions that have played a vital role in its development and in boosting other sectors. He highlighted that the Cooperative Bank of Kenya is 65% owned by cooperatives, and institutions like the Cooperative University of Kenya and the Cooperative Insurance Company (CIC) have emerged from the cooperative movement. “I take pride in the cooperative movement in Kenya because these institutions are fundamental to the country’s development,” he said.
In light of the growing trend of digital business transactions, Oparanya encouraged cooperatives to fully embrace and invest in information and communication technologies (ICT) to improve efficiency in serving their members. He noted that Saccos are already performing better than banks in loan processing by reducing turnaround times and streamlining paperwork.
He announced that the ministry is working on a proposed uniform ICT platform for all Saccos in the country and looks forward to engaging in major discussions with Saccos leaders on this matter. He argued that such a platform would reduce costs associated with upgrading individual Sacco digital systems.
Oparanya stressed the importance of sound decision-making within Saccos to avoid negative outcomes. He cautioned against overborrowing to pay member dividends, as this practice has adversely affected agriculture-based cooperatives. He emphasized that leadership in Saccos should adhere to democratic values, with decisions made based on consensus among members, directors, and management. He reinforced that while Saccos remain independent, government oversight should aim to create an enabling environment for the cooperative movement to thrive.
