Cs Oparanya Calls For Stronger, Self-regulated Co-operatives As Forum Concludes

By Admin Thursday, 9^th April 2026

Click here to Download the full CS Speech

---

The Leadership, Ethics and Strategic Governance Forum in Naivasha concluded on a high note with a comprehensive and forward-looking address by Wycliffe Oparanya, who outlined key policy directions, legislative priorities, and strategic interventions aimed at strengthening the co-operative sector in Kenya.

In his address, the Cabinet Secretary emphasized the critical role of co-operatives in economic development and called for enhanced governance, stronger institutional frameworks, and increased inclusion of small-scale entrepreneurs within the co-operative movement.

Advancing Legislative Reforms in the Co-operative Sector

A central theme of the Cabinet Secretary’s remarks was the ongoing effort to reform the legal and regulatory framework governing co-operatives. He noted that the proposed Co-operative Bill was developed to address longstanding challenges within the sector, including governance gaps and structural inefficiencies.

Upon assuming office, he reviewed the Bill and identified several obstacles that had slowed progress, including resistance from vested interests. Despite these challenges, he reaffirmed his commitment to ensuring that the Bill is enacted into law before the end of his tenure.

He further announced plans to establish a dedicated committee that will develop regulations to operationalize the new law once it is passed. These regulations will provide clarity and structure, ensuring that co-operatives operate within a well-defined and supportive framework.

The Cabinet Secretary expressed optimism that both the Co-operative Bill and related SACCO legislation will be passed by August, noting that the President is fully aware of and supportive of the reforms being undertaken within the sector.

Promoting Inclusion Through Focus on Small Enterprises

In addressing the future of the co-operative movement, the Cabinet Secretary underscored the importance of inclusivity, particularly for small-scale entrepreneurs. He noted that small business operators form the majority of Kenya’s economic base and must be actively integrated into co-operative structures.

He cited initiatives such as the Hustler Fund as part of broader efforts to support this segment, emphasizing that co-operatives have a key role to play in extending financial and economic opportunities to underserved populations.

By focusing on small businesses, co-operatives can expand their reach, enhance their impact, and contribute more significantly to national development.

Lessons from Global Co-operative Models

Drawing from his international engagements, the Cabinet Secretary shared observations from countries such as the United Kingdom and Germany, where co-operatives are deeply embedded within society.

He noted that in these countries, co-operatives play a central role in service delivery, often managing essential services such as utilities, including water, and supporting community development initiatives such as education.

In such models, the government primarily provides oversight, while co-operatives take responsibility for service provision and community support. He challenged Kenyan co-operatives to adopt a similar approach by strengthening their structures and enhancing their capacity to serve members effectively.

Reinforcing the Principle of Self-Regulation

The Cabinet Secretary reiterated his long-standing position that co-operatives are private entities that must take primary responsibility for their governance and sustainability. He emphasized that while the government plays an important supervisory role, the success of co-operatives ultimately depends on their ability to regulate themselves.

He urged co-operatives to organize themselves effectively, strengthen internal controls, and build robust governance systems. Institutions that fail to establish proper structures, he noted, are more likely to encounter operational and financial challenges.

At the same time, he acknowledged that the legislative process remains open, encouraging stakeholders to submit any proposed amendments to ensure that the final law reflects the needs and realities of the sector.

Strengthening Governance and Accountability

Governance emerged as a key area of focus in the Cabinet Secretary’s address. He noted that many of the challenges facing co-operatives can be traced back to weaknesses in governance, including inadequate oversight and poor decision-making structures.

To address these issues, he emphasized the need for strong internal controls and clear organizational frameworks. Institutions must ensure that their governance systems are transparent, accountable, and aligned with best practices.

He also addressed concerns around leadership conflicts, particularly between boards and management. In a significant policy direction, he indicated that co-operatives will be required to justify decisions to remove Chief Executive Officers, with such actions being subject to review by the Sacco Societies Regulatory Authority.

This measure is aimed at protecting institutional stability and ensuring that leadership transitions are handled in a fair and transparent manner.

Promoting Financial Discipline in SACCOs

The Cabinet Secretary also raised concerns about financial practices within some SACCOs, particularly the practice of borrowing funds to pay dividends. He firmly stated that such practices will no longer be permitted, as they undermine financial sustainability and expose institutions to unnecessary risk.

He emphasized the importance of prudent financial management, urging co-operatives to operate within their means and prioritize long-term stability over short-term gains.

Digital Transformation as a Requirement

In line with global trends, the Cabinet Secretary highlighted the importance of digital transformation within the co-operative sector. He announced that going forward, no SACCO will be licensed unless it demonstrates a clear commitment to digitization.

This requirement reflects the growing importance of technology in enhancing efficiency, improving service delivery, and strengthening competitiveness. Co-operatives were encouraged to invest in digital systems and build the necessary capacity to support their adoption.

Building Capacity and Strengthening Institutions

The role of institutions in supporting the co-operative sector was also emphasized. The Cabinet Secretary noted that organizations such as the Co-operative University of Kenya will play a key role in developing and standardizing training materials.

He indicated that all training content within the sector will need to be aligned with approved standards to ensure consistency and quality. This approach is expected to enhance capacity building and promote professionalism across the sector.

Additionally, he highlighted the importance of strengthening co-operative-owned institutions such as CIC Insurance Group, noting that they play a critical role in supporting the co-operative ecosystem.

Addressing Leadership Succession and Youth Inclusion

The Cabinet Secretary also raised concerns about leadership succession within the sector, noting that many co-operative leaders are above the age of 50. He emphasized the need to actively involve young people in leadership and decision-making processes.

By promoting youth inclusion, co-operatives can ensure continuity, bring in fresh perspectives, and remain relevant in a rapidly changing environment.

Regulating Both Large and Small Co-operatives

In a move aimed at enhancing equity and protection within the sector, the Cabinet Secretary stressed that both large and small co-operatives must be effectively regulated. He noted that every member’s contribution, regardless of the size of the co-operative, is equally important.

Strengthening regulation across the board will help protect members, enhance confidence, and ensure that all institutions operate within established standards.

A Continental Leadership Role

In a significant development, the Cabinet Secretary announced that he has been elected to chair a continental body bringing together Cabinet Secretaries responsible for co-operatives across Africa for the next three years.

This position provides an opportunity for Kenya to play a leading role in shaping the co-operative agenda at the continental level and to share best practices with other countries.

Looking Ahead

As the forum comes to a close, the Cabinet Secretary’s address provided a clear roadmap for the future of the co-operative sector. His remarks reinforced the importance of strong governance, legislative reform, financial discipline, and strategic leadership.

The forum, convened by the Co-operative Alliance of Kenya, has provided a valuable platform for reflection, dialogue, and knowledge sharing among co-operative leaders.

As participants return to their respective institutions, the challenge now lies in translating these insights into action, ensuring that the co-operative movement continues to grow, innovate, and contribute meaningfully to national and regional development.