Co-operative organizations are indispensable actors in achieving socio-economic development for sustainable economic growth and societal equity.
This significance is reflected in the government’s recognition of co-operatives as pivotal instruments in advancing the Bottom-Up Economic Transformation Agenda.
The Co-operative Movement has mobilized savings of Sh1 trillion, commanding an impressive asset base of Sh1.5 Trillion and a substantial loan portfolio amounting to Sh980 Billion.
I encourage financial co-operatives to embrace digital transformation, stay attuned to cyber security trends, and prioritize data privacy through regular review of internal control systems and risk management processes.
The adoption of robust ICT systems and data protection measures is imperative to ensure the smooth functioning of Sacco operations.
Furthermore, our commitment to comprehensive reforms within the co-operative sector remains steadfast.
The impending enactment of the Co-operatives Bill 2023 will provide a robust legal framework conducive to fostering a competitive and sustainable co-operative sector within a devolved governance system.
As we progress, the operationalization of the Deposit Guarantee Fund to safeguard members’ savings and the establishment of the Central Liquidity and Shared Services Facility will facilitate Saccos’ participation in the National Payment System and promote inter-Sacco lending.
Other government transformational reforms encompass the coffee bill and regulations, as well as the Co-operative regulations, which, once enacted, will set the stage to transform the co-operative sector for national socio-economic development.
The government has prioritized productive value chains such as maize and cereals, sugarcane, tea, artisanal fishing, dairy, artisanal mining, edible oils, coffee, housing, livestock, cotton, macadamia and avocado, among others, as flagship areas to focus on through co-operatives.
This calls upon Saccos to be ready to support these value chains through targeted tailor-made financial products.
The active participation of Saccos will greatly contribute to the success of the government’s Bottom-up Economic Transformation Agenda.
Supporting MSMEs
At the same time, the government has recognized the importance of the Micro, Small and Medium Enterprises (MSME) sector and has prioritized it as a critical pillar of the BETA. The Ministry has dedicated substantial efforts to foster the growth of the MSME sector, recognizing its potential to drive economic growth and support a significant portion of the population.
We have highlighted the key strategies of the Bottom-Up Economic Transformation Agenda (BETA) the value chains approach, and sought funding from the World Bank to support these initiatives.
We will continue emphasizing the deliberate focus on key value chains in the economy that have high growth potential. By identifying and supporting these value chains, the government aims to stimulate economic development and create opportunities for the population.
A shared platform for cooperatives would greatly enhance their ability to collaborate and work together effectively. This would lead to improved interoperability, allowing cooperatives to share information, resources, and services seamlessly. By facilitating inter-borrowing, cooperatives would have increased access to capital, enabling them to undertake larger projects and expand their businesses.
Our development partners play a crucial role in the implementation of various programmes we’re running as a ministry that continues to significantly impact the lives of the people at the bottom of the pyramid. To transform the MSME sector, we need support from all our partners, reforms in favour of the sector and a policy shift that brings the sector to the core of important development discourses at all levels. We are committed to this agenda.
Hon. Simon Chelugui, Cabinet Secretary Ministry of Co-operatives and MSMEs DevelopmentÂ
