The Chairman, National Ushirika Day Celebrations Council, Chairmen, Co-operative Societies & Unions, Chief Executive Officers, Distinguished Guests, Ladies and Gentlemen,
It gives me great pleasure to join co-operators here in Kenya and globally in marking this important day. The United Nations decided that every year on the first Saturday of July be designated as Global Cooperatives Day. We have religiously observed this day annually in what has become to be popularly known as Ushirika Day here in Kenya.
Let me thank the National Ushirika Day Celebrations Council from the outset for Kenyanizing this Day. It feels very much at home that way as we observe this 99th Ushirika Day Celebrations virtually. This has been necessitated, as you already know, by the global COVID -19 pandemic.
The theme for this edition is “REBUILD BETTER TOGETHER”. Just as the old Swahili maxim says ‘umoja ni nguvu na utengano ni udhaifu’, we must work together as we rebuild this sector. This follows the ravages occasioned by the pandemic that have had unprecedented impact on all aspects of our lives the world over. When we work together, we shall be successful in our undertakings.
Mitigating measures have been rolled out rapidly including the speedy production of vaccines. We have been affected directly and indirectly in one way or another through the disruptions from this global pandemic. I urge all co-operators to embrace all measures that have been put in place including vaccination.
Dear Cooperators,
During the on-gong COVID-19 pandemic period, my Ministry through the State Department for Co-operatives joined other well-wishing Kenyans in providing care to other Co-operators in line with one of the principles of Co-operatives of showing Concern for members of our Community.
We constituted the Co-operatives Coronavirus Responsive Committee (CCRC) that mobilized the Co-operative Movement’s collaborative support. It supported vulnerable co-operative members and their families with over 500, 000 survival kits. I wish to Congratulate the committee for a job well done. I have also been informed that, during this year’s celebrations, various co-operatives will showcase how they are managing the COVID -19 pandemic crisis with solidarity and resilience.
The focus will be on:
i. Human-centered business model;
ii. Sustained Co-operative values of self-help and solidarity; and
iii. Ethical values of social responsibility and concern for the community and on how they can amongst others: –
• Reduce inequality,
• Create shared prosperity, and
• Respond to the immediate impacts of COVID -19.
Ladies and Gentlemen,
I need not remind you the importance of Co-operatives and the role they play in the Socio-economic development of our country. Co-operatives cut across all sectors of the economy and are critical in the contribution of equitable incomes. Some of their activities include food production, value addition, savings mobilization, financial deepening and provision of affordable decent housing. Cooperative values and principles which are the pillars of the co-operative spirit have withstood the test of time and are resilient against any form of economic ideology. The co-operative business model is the best vehicle for supporting the low income and middle-income segment of our population so as to minimize the levels of high poverty. This resonates well with the Government Policy of promoting financial inclusion and access by targeting majority of the population to participate in the formal market economy.
As you are already aware, the co-operative philosophy is anchored on the co-operative principles. They are the guidelines through which co-operatives regulations and practices are derived from. They are:
1. Open and voluntary membership,
2. Democratic member control,
3. Economic participation,
4. Autonomous and independent.
5. Education, training and information,
6. Co-operation amongst co-operatives, and
7. Concern for the community.
My Ministry recognizes that Co-operatives are better placed to bring about equitable development in addition to social cohesion and continuity in communities. Co-operatives possess the institutional capability to realize government intentions for sustainable development.
Mr. Chairman,
Since independence in 1963, the National Government through policy formulation and legislative framework has continued to support the growth and development of the co-operative movement as a significant economic actor. We recently completed the formulation of the National Co-operative Policy (NCP). The objective of this policy is to promote competitive and sustainable co-operatives for socio-economic development. Challenges facing the co-operative movement have been identified.
The policy advocates for a more proactive engagement between the co-operative sector and stakeholders.
Last but not least, it delimitates the role of the two levels of Government in co-operative development through growth and development of co-operatives in Kenya.
You will recall that, I recently appointed a Taskforce to help operationalize the National Co-operative Policy and review the Co-operative Societies Act and the Sacco Societies Act. This taskforce will look at the entire Co-operative structure; self-regulation to improve co-operative governance; streamlining of finance and investment procedures; co-operative research, education and training; youth and gender; and environmental concerns amongst others in the co-operative sector.
Ladies and Gentlemen,
The Government has strengthened the newly established Kenya Mortgage Refinance Company (KMRC), a National Treasury-backed lender, which will offer banks and SACCOs cash for onward lending to households and offer Zero Stamp duty to first-time homeowners.
I wish to encourage Co-operatives and Co-operators to take advantage of this noble initiative.
The Kenya Mortgage Refinance Company will offer fixed rate long term loans initially at concessional rates to financial institutions. These loans will be offered to participating financial institutions to finance affordable housing loans as per the Government’s Big Four Agenda. Affordable housing loans are capped at 4 million shillings within the Nairobi Metropolis (Nairobi, Kiambu, Machakos and Kajiado) and 3 million shillings elsewhere and to be extended to borrowers with a monthly income of not more than KES. 150,000.
Dear cooperators,
The Ministry is cognizant of the challenges faced by co-operatives such as weak governance, high cost of finance, inadequate market access, delays and non-remittance of deductions by employers, massive investments in non-core activities, over dependence on external funding, non-performing loans, obsolete technology, cybercrime & fraud; low capital base; low participation of youth and women and inadequate human resource capacity among others.
Several initiatives and reforms have been undertaken over the years to address these issues. Some of the recent reforms being undertaken by my Ministry are:-
• We have finalized the process of reviewing the National Co-operative Policy and we are at the tail end of the Parliamentary process.
• The 2020 Regulations for Non-Deposit Taking (NDT) SACCOs have been operationalized covering Non-Deposit Taking Saccos with over 100 million deposits, diaspora co-operatives and Saccos operating on virtual platforms
• Comprehensive review of the Co-operative Societies Act and the SACCO Societies Act is under way.
• Automation of services through Co-operative Management Information System (CMIS) to ease linkages with the counties and Co-operative societies in order to enhance service delivery
• Facilitation of the establishment of Sacco Societies Fraud investigation unit to combat cybercrime, fraud and misappropriation of members’ funds.
• Reforms in the coffee cooperatives to improve production, marketing structures and payment to farmers.
• Facilitation of the establishment of a Central Liquidity Fund (CLF) and Shared Services platform to provide short term financing and enable co-operatives to participate in the National Payment System. This will restore public confidence and investors’ trust in co-operatives.
• Facilitate establishment of the Kenya Society for Professional Co-operators (KSPC). This is expected to enhance professionalism in co-operatives by setting minimum operational and ethical standards. This will also foster leadership and management capacities within the co-operative sector to deliver to members’ satisfaction.
• Progressive recovery of all outstanding SACCO dues as provided for in the Co-operative Societies Act.
As I conclude, let me reiterate that the National Cooperative Policy recognizes Co-operatives as vehicles for realization of Kenya Vision 2030. It also identifies co-operatives as private organizations that serve public good.
The two levels of Government shall continue to work closely with the Co-operative Alliance of Kenya (CAK) among other stakeholders to promote self-regulation. It is expected to provide direction on the way the co-operative sector is governed in order to achieve socio-economic development.
Finally, let me thank the NATIONAL USHIRIKA DAY CELEBRATIONS COUNCIL for organizing this important event in the calendar of co-operators.
Asanteni
