The cooperative sector is a crucial driver of socio-economic development in Kenya, empowering even the most marginalized segments of the population at the bottom of the economic pyramid. This sector plays a key role in enabling the people, including those who lack capital, to participate in the economy by providing them with the necessary skills.
Cooperatives are integral to every aspect of our economy, from aggregation to primary processing, transportation to marketing, and savings mobilization to financial inclusion. Since our nation’s inception, cooperatives have been enshrined as vital by our visionary founders in Sessional Paper number 10 on “African Socialism and Its Application to Development” and have led to remarkable strides in every sector.
However, cooperatives face challenges today, such as the cost of agricultural inputs, cybercrimes, lack of working capital, and the need for investment in human capital and technology. Despite these challenges, there are significant opportunities for the government to leverage cooperatives and micro, small, and medium-sized enterprises (MSMEs) as catalysts for economic growth, reducing the cost of living, eradicating hunger, fostering job creation, broadening the tax base, and enhancing foreign exchange reserves.
The Ministry is committed to cultivating an enabling environment for cooperatives to thrive by formulating progressive policies, implementing supportive legislation, and instructive frameworks. For example, The Cooperative Policy, encapsulated in Sessional Paper No. 4 of 2020, with a theme “Promoting Cooperatives for Socio-Economic Transformation,” stands as a testament to this commitment, and the pending Cooperatives Bill 2023 heralds a new era of possibilities.
The bill contains interventions that will enhance the growth and development of the cooperative sector. The reforms provide for the registration of Cooperative Federations for each Value Chain, enhancing governance standards, including the segregation of roles between boards of directors and management staff, alongside rigorous vetting mechanisms, to underscore the commitment to integrity and accountability.
As we celebrate the Kenya National Police DT Sacco’s 51st Annual Delegates Meeting, I am delighted to witness the commendable performance of the Sacco, which stands as a beacon of empowerment and progress. Robust financial indicators, including notable growth in assets to Kes.54.2 Billion with an increase of 10.8%, deposits by 10% to stand at Kes.28.5 Billion, loans and advances by 11.7% to Kes.45.6 Billion, and revenues by 10.1% to Kes.8.7 Billion speaks volumes of the Sacco’s dedication and resilience. The board and management are urged to build upon this success and strive for even greater heights in the year ahead.
As leaders, we must embrace innovation and devise strategies that will propel cooperatives toward continued excellence. Technology stands as a powerful catalyst for transformation, offering avenues for enhanced efficiency, reduced operational costs, and expanded service delivery. By embracing ICT solutions, prioritizing technological innovation, and fostering research and collaboration, cooperatives can unlock new opportunities, streamline operations, and fortify their value proposition.
Once again, congratulations to Kenya National Police DT SACCO for a job well done.
