The government is proposing a Co-operative Bill that aims to reform co-operatives to align them with the bottom-up economic agenda. The Bill seeks to establish a regulatory framework that conforms to constitutional principles, strengthens governance, and supports coffee, cotton, macadamia, beef, and avocado farmers. It also aims to regulate Saccos and dairy farmers and establish the Office of Commissioner for Co-operative Development and Office of County Co-operatives Director.
The proposed law classifies co-operatives into producer, housing, savings, savings and investment, transport, worker, and consumer co-operatives and restricts members to a fifth of the paid-up share capital of any co-operative registered in the country. Boards of Directors of co-operatives that fail to display their certificate of registration will be liable upon conviction to a fine of Sh100,000 or three years in jail. The proposed law seeks to regulate the use of the words “co-operative” and “Sacco” by any business or individual in Kenya.
In recent years, the co-operative sector has emerged as a pivotal part of the economy, fostering community development, economic empowerment, and social cohesion. However, the potential of co-operatives is often hampered by outdated regulations, lack of access to capital, and insufficient support for innovation. This is why reforms in the co-operative sector are not just welcome but necessary for their evolution and for them to contribute significantly to the broader economy.
The co-operative model is inherently designed to meet the needs of its members and the community. Unlike traditional corporations that prioritize shareholder value, co-operatives focus on member value, which can include anything from economic participation to social and community goals. This member-centric approach is what makes co-operatives unique and valuable.
One significant area where reforms are needed is in regulatory frameworks. Many existing laws governing co-operatives are outdated and do not reflect the current economic and social landscape.
Innovation and technology adoption in the co-operative sector also require attention. The digital economy offers tremendous opportunities for co-operatives, from reaching new markets to streamlining operations and improving member services.
The reforms are not just good for co-operatives; they are good for society as a whole. By fostering a more co-operative economy, we can build a country that is more equitable, sustainable, and resilient. It is time for policymakers, co-operative leaders, and the community to come together to advocate for and implement these necessary reforms.
