Government’s role in co-operative development in Kenya

The government of Kenya plays a crucial role in the development of cooperatives, aiming to foster economic growth and alleviate poverty within the population.
While the government does not intervene extensively in the cooperative movement, it provides essential support by establishing the legal framework for registration and occasionally granting minor privileges such as reduced tax rates.
Policy Framework and Commitment
The government recognizes the significance of the cooperative movement in driving social and economic development.
Anchored on the theme “Promoting Co-operatives for Socio-Economic Transformation,” the government’s policy aims to address contemporary challenges hindering cooperative growth.
It advocates for proactive engagement between national and county governments, the cooperative movement, and other stakeholders.
The policy aligns with the Constitution of Kenya 2010 and national development objectives outlined in Kenya Vision 2030.
Upholding Cooperative Values
Kenya boasts one of Africa’s strongest cooperative sectors, contributing approximately 43% to the country’s GDP.
Cooperative societies serve as significant employers, offering job opportunities to over 300,000 individuals and self-employment avenues to many more.
Notably, Savings and Credit Cooperatives (Saccos) have witnessed remarkable growth, mobilizing savings exceeding Kshs 230 billion.
With approximately 15,000 registered cooperatives and around 12 million members, the sector significantly contributes to funding small-scale and informal enterprises, thereby stimulating employment and economic activities, particularly at the county level.
The government’s commitment to supporting cooperative development underscores its recognition of cooperatives as key drivers of socio-economic transformation.
By providing a conducive policy environment, upholding cooperative values, and facilitating collaboration between stakeholders, the government aims to harness the full potential of cooperatives in advancing economic growth and uplifting livelihoods across Kenya.