Deputy President Kithure Kindiki has hailed Kenya’s cooperative movement as a key driver of economic empowerment and inclusive growth, saying it has enabled millions of Kenyans to pool resources, build enterprises and create wealth through collective investment.
Speaking during the 104th National Ushirika Day celebrations held at Uhuru Park in Nairobi on Saturday, Kindiki said Kenya has one of the most successful cooperative sectors in the world and that it remains a major pillar of the country’s economic transformation.
He said the country has about 14 million cooperative members, including 8 million registered under Savings and Credit Cooperative Organisations (SACCOs), which collectively hold more than Sh1 trillion in savings.
“Kenya has one of the most successful cooperative sectors worldwide,” Kindiki said, noting that cooperatives have played a central role in helping citizens pool resources, share risks, establish businesses and improve their livelihoods.
The Deputy President said the government is implementing wide-ranging reforms aimed at strengthening governance, improving accountability, enhancing professional management and accelerating the digital transformation of cooperatives.
He said the reforms are also intended to safeguard members’ savings and ensure cooperatives remain financially stable and sustainable.
“The Government is implementing reforms to create more transparent, better governed, professionally run, financially resilient and technology-driven institutions,” Kindiki said.
He added that the reforms are intended to position cooperatives as stronger engines of economic growth and inclusive development.
Kindiki further announced that President William Ruto is expected to assent to the new Cooperatives Bill within one month, describing it as a key milestone in modernising the sector.
He said the proposed law will strengthen governance, improve accountability and align cooperative management with the Constitution while protecting members’ investments.
The Deputy President reiterated that the cooperative movement remains central to the government’s Bottom-Up Economic Transformation Agenda (BETA), which seeks to promote grassroots wealth creation by empowering citizens through productive economic activities.
The Cooperatives Bill, which seeks to repeal the Cooperative Societies Act of 1997, introduces sweeping reforms aimed at modernising the sector. Among the proposed changes are stricter governance standards, director term limits, stronger financial controls and enhanced protection of the sector’s savings portfolio, currently estimated at more than Sh1.2 trillion.
Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises Development Wycliffe Oparanya also described the cooperative movement as the most effective model for reducing poverty and creating sustainable economic opportunities.
“Having been in the ministry for nearly two years now, I believe the cooperative model is the only one that can take Kenyans out of poverty,” Oparanya said.
He said cooperatives have enormous potential to create wealth, generate employment and improve household incomes across the country.
“As a ministry, what we are doing is creating a conducive environment for the cooperative movement to thrive,” he said.
Oparanya acknowledged governance challenges affecting some cooperatives but expressed confidence that the proposed Cooperatives Bill would strengthen regulation, improve management and restore public confidence in the sector.
The 104th National Ushirika Day celebrations, held under the global theme “Cooperatives for a Peaceful World,” brought together cooperative leaders, government officials and members from SACCOs, farmer cooperatives, transport cooperatives and savings societies from across the country.
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. Email: waliaulaandrew0@gmail.com
