Cabinet Secretary for Cooperatives and MSMEs Development, Wycliffe Oparanya, has called on cooperatives to integrate digital tools and enhance governance while fostering strategic partnerships. He said the government views cooperatives as vital not only as economic units but also as mechanisms for promoting equity, unity, and shared prosperity.
In a recent address during the Ushirika Day celebrations, Oparanya said the Ministry is committed to digitization, which aims to improve accountability and transparency within the cooperative sector. He highlighted the importance of adopting digital transformation to ensure the efficient management of financial resources, making systems accessible and cost-effective for institutions and their members.
“Cooperatives are essential pillars of Kenya’s economic transformation. Together, let us strive for a sustainable and prosperous future,” he stated, noting the global resilience of cooperatives through their inclusive and democratic values.
The Cabinet Secretary pointed out that over 30,000 cooperatives in Kenya are transforming areas such as agriculture, finance, housing, and health, contributing to Vision 2030 and the United Nations Sustainable Development Goals (SDGs).
“Cooperatives are instrumental in lifting millions out of poverty, especially for farmers and members of savings and credit cooperative societies (SACCOs),” he said.
He added that cooperatives play a critical role in providing affordable credit to farmers. He encouraged development partners to leverage SACCOs as financial intermediaries to support micro, small, and medium enterprises (MSMEs).
The CS noted that Kenyan cooperatives possess savings totaling Sh1.2 trillion, with Sh1 trillion already disbursed as loans to members.
Government has initiated a ward-based cooperative model and a Sh4.5 billion revolving fund, aimed at fostering a supportive environment for cooperatives.
The Cooperatives Bill 2024 and amendments to the Sacco Act are expected to bolster resilience in the sector. Oparanya expressed hope that these legislative changes would enhance transparency, ethical leadership, and strengthen governance within cooperatives.
He urged cooperative leaders to promote youth and women’s leadership, emphasizing that diversity drives sustainability.
Macloud Malonza, the Cooperative Alliance of Kenya Chairman, noted that the cooperative movement accounts for over 30% of national savings and ranks first in Africa and seventh globally. He reported that the sector directly employs over 500,000 people and supports more than a million indirectly.
Malonza noted that cooperatives face significant competition from other financial institutions and underscored the need for investment in advanced ICT systems. He called on the government to establish a policy and legal framework for Shared Services Platforms, such as the CoopTech SuperApp, to enable cooperative financial institutions to access diverse systems in a cost-effective manner.
