Kenya’s cooperative movement: a historical overview

The cooperative movement in Kenya traces its roots back to the early 20th century, with the registration of the first cooperative society in 1908.
Initially, these cooperatives were established by white settlers to develop and market crops in the region.
It wasn’t until the 1950s that Africans were permitted to form cooperatives, marking a significant shift towards inclusivity in cooperative ownership and management.
By the time Kenya gained independence in 1963, approximately 1000 registered cooperatives were operating in the country.
The 1960s and 1970s witnessed the founding of several important national cooperative organizations (NACOs), including the Kenya National Federation of Cooperatives (now known as CAK) in 1964, Cooperative Bank of Kenya in 1968, Kenya Union of Savings and Credit Cooperatives (KUSCCO) in 1971, Cooperative Insurance Company (CIC), and National Cooperative Housing Union (NACHU) in 1978. These organizations played a crucial role in advancing the cooperative movement and providing support to member cooperatives across various sectors.
However, despite the growth and development of cooperatives during this period, some NACOs faced challenges and eventually ceased operations in the 1980s.
Examples include the Kenya Cooperative Creameries (KCC) and Kenya Planters Cooperative Union (KPCU).
Presently, Kenya boasts a diverse range of cooperative enterprises operating in sectors such as marketing, banking, insurance, savings and credit cooperatives (SACCOs), housing, and transport.
According to the State Department of Cooperatives, as of 2023, there are more than 22,883 registered cooperative societies in Kenya.