The Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSME) Development launched its new Strategic Plan for 2023-2027, which is designed to align with the Kenya Co-operatives Transformation Strategy (KCTS).
The objective of the ten-year KCTS is to support the implementation of the National Co-operative Policy. The Strategy describes the measures and strategies needed to execute the government development agenda, which places co-operatives at the heart of economic development. KCTS also outlines the roles and opportunities for all participants in the co-operative sector to effectively contribute to the growth and development of co-operatives in Kenya.
This Strategic Plan details the medium-term (five-year) strategies or deliverables the State Department for Co-operatives aims to achieve under the KCTS.
Over the past five years, the State Department for Co-operatives (SDC) has made strides, including developing a national co-operative policy, which Parliament approved as Sessional Paper No. 4 of 2020. This policy aims to promote the role of co-operatives in fostering socio-economic transformation. In addition, the SDC has formulated the Co-operatives Bill and reviewed key legislation, such as the Co-operatives Financing Policy and the SACCO Societies Act, all set to be finalized within the framework of the new Strategic Plan. The National Coffee Co-operative Union (NACCU) is also expected to undergo restructuring and transformation into a federation following the enactment of the Co-operatives Act.
Notable accomplishments during this period include the construction of a co-operative cotton ginnery in Luanda, Busia, and the provision of digitization equipment to 325 coffee factories, as well as metallic drying beds to 125 factories. The Coffee Cherry Advance Revolving Fund was established to support coffee farmers with an initial capital of Ksh3 billion. However, the implementation of a credit scheme faced delays due to insufficient funding.
Additionally, co-operatives were supported to recover non-remittances totaling Ksh 4.042 billion, albeit falling short of the Ksh 7.5 billion target due to escalating governance issues within employing organizations. Progress has also been made in developing the Co-operatives Management Information System (CMIS) and CoffeeMIS to reach 100% completion during this strategic planning period.
The State Department aims to foster a sustainable and vibrant co-operative sector by providing a suitable policy, legal, and regulatory framework and capacity-building initiatives. Six key issues that pose challenges to the sector have been identified, including outdated policies, unaggregated economic units leading to limited production and market access, inadequate funding for the SDC, weak governance, limited access to affordable financial services, and poor service delivery.
The Strategic Plan outlines several critical goals for the next five years: establishing an enabling policy and regulatory framework, promoting good governance within co-operatives, aggregating economic units, enhancing access to financial services, improving service delivery, and ensuring the State Department has adequate and sustainable financial resources.
The total estimated cost of the Strategic Plan is Ksh 5.786 billion, with progress expected to be monitored annually.
Cabinet Secretary Wycliffe Oparanya said the plan offers a clear roadmap and establishes strong partnerships aimed at transforming the co-operative sector.
Principal Secretary Patrick Kilemi emphasized the government’s commitment to allocate sufficient resources for recruiting co-operative officers and establishing fully staffed offices to support co-operatives. Jack Ranguma, the Sacco Societies Regulatory Authority (SASRA) Board Chairman, announced that the authority will ensure the goals outlined in the Co-operatives Strategic Plan are achieved within the designated timeframe.
