Features & Sacco Leadership

Challenges facing cooperatives in Kenya

Reasons for Dissolution of Cooperatives: Challenges facing cooperatives in Kenya: Chamas and SACCOs: How SACCOs make money

Cooperative societies in Kenya are grappling with a myriad of challenges that hinder their ability to fully realize their economic and social potential.

These obstacles, if not addressed, could impede the growth and sustainability of the cooperative movement in the country.

One of the pressing challenges faced by cooperatives is the increasing failure of awareness regarding their economic and social impact.

Despite their significant contributions to job creation, poverty alleviation, and community development, many people remain unaware of the vital role cooperatives play in the Kenyan economy.

Additionally, there is a lack of adequate entrepreneurial vision among cooperative members. This deficiency hampers their ability to identify and capitalize on emerging opportunities, thereby limiting the growth prospects of their enterprises.

A significant portion of cooperative members lacks a clear understanding of the principles and values that underpin cooperative societies. This lack of awareness can lead to internal conflicts, mismanagement, and inefficiencies within cooperative organizations.

Further, there is a notable absence of policies and programs focused on promoting gender equality and youth participation in cooperatives. Failure to address this issue jeopardizes the future sustainability of the cooperative movement, as it risks excluding vital demographic groups from active participation.

Another challenge facing cooperatives is their lagging innovation and creativity. In today’s rapidly evolving economic landscape, innovation is key to remaining competitive and relevant. Without a culture of innovation, cooperatives risk stagnation and being left behind in an increasingly dynamic market environment.

The devolved system of government presents a constraint to the cooperative sector. Disagreements between the national government and county governments regarding their respective roles in cooperative governance create uncertainty and hinder effective coordination and implementation of cooperative policies and programs.

Addressing these challenges requires concerted efforts from stakeholders at all levels, including government agencies, cooperative societies, civil society organizations, and development partners.

Andrew Walyaula
Author: Andrew Walyaula

Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com

Andrew Walyaula

About Author

Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com

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