Preparing For Tomorrow. Cak Chairman Macloud Malonza Calls For Future-ready Co-operatives

By Admin

During the 4th Annual Cabinet Secretary’s Consultative Forum with Co-operative Stakeholders held from 17th to 21st November 2025, CAK Chairman Mr. Macloud Malonza delivered a powerful and forward-looking message to the co-operative movement. His address focused on the urgent need for co-operatives to strengthen their foundations today so that they remain resilient, competitive, and relevant in the years ahead.

Speaking to delegates from across the country, Mr. Malonza emphasized that the future of the co-operative sector will depend on the decisions made now—decisions about governance, leadership, financial stewardship, and institutional preparedness. He urged leaders to shift from reactive management to proactive strategy, warning that the sector must evolve to match the fast-changing economic, technological, and regulatory environment.

Strengthening Governance for a Sustainable Future

In his speech, the Chairman stressed that future-proofing co-operatives starts with strong governance. He noted that governance weaknesses—such as poor oversight, weak internal controls, and leadership gaps—remain some of the biggest threats to co-operative stability. To remain competitive and trusted, he said, co-operatives must invest in leadership development, enforce transparent systems, and prioritize accountability.

Mr. Malonza reminded delegates that co-operatives hold billions in members’ savings and assets; therefore, institutions must be managed with professionalism, integrity, and strategic foresight. Strong governance is not just a compliance requirement—it is the backbone that keeps institutions stable and able to respond effectively to emerging challenges.

He called on boards and management teams to build systems that can withstand shocks, protect their members, and ensure continuity even during leadership transitions. According to him, the health and longevity of co-operatives depend largely on how well they are governed today.

Safeguarding Members’ Assets and Trust

A key part of Mr. Malonza’s address centered on protecting members’ wealth. He highlighted the importance of putting in place clear strategies to safeguard assets, especially in an era where financial risks, fraud attempts, and economic uncertainties continue to rise.

He urged co-operative leaders to review and strengthen internal controls, risk management policies, investment decisions, and financial reporting standards. Transparent management, he said, not only builds trust but ensures that members continue to see co-operatives as secure places to save, borrow, and invest.

Mr. Malonza also emphasized that safeguarding assets is not just about compliance—it is about preserving the confidence that members have placed in the movement for decades. Co-operatives thrive because people trust them. Protecting that trust is essential for growth and sustainability.

Government Commitment to Support the Sector

Speaking in the presence of the Cabinet Secretary for Co-operatives, Mr. Malonza assured stakeholders that the Ministry remains committed to supporting the sector, especially around taxation matters, which have been a major concern for many co-operatives.

He noted that the government recognizes the critical economic role played by the co-operative movement—ranging from savings mobilization and affordable credit to agricultural productivity and wealth creation. For this reason, he emphasized that the Ministry intends to work more closely with co-operatives to address tax issues, reduce unnecessary burdens, and create a more supportive environment for growth.

Mr. Malonza reaffirmed that co-operatives should not be disadvantaged by tax policies that do not reflect their unique structure or social-economic role. He assured leaders that ongoing discussions with the government are aimed at ensuring fair, balanced, and development-oriented outcomes.

The Debate on Term Limits for Co-operative Leaders

One of the most notable moments of the forum happened during the Questions & Answers session, after the Cabinet Secretary had stepped out. Mr. Malonza addressed one of the most widely discussed topics in the Co-operative Bill: the proposed term limits for co-operative leaders.

He made a bold appeal to the Cabinet Secretary and the Commissioner for Co-operatives to reconsider this provision. Mr. Malonza proposed that instead of embedding term limits in the national law, the decision should be left to individual co-operatives through their own bylaws.

According to him, co-operatives are democratic institutions where members have the constitutional right to elect leaders of their choice. Imposing a uniform term limit from the national level, he argued, may interfere with members’ freedom to choose and may disrupt continuity in institutions that are performing well.

He further explained that if you look at the top 10 SACCOs in Kenya today, almost all of them are long-established institutions that grew steadily under consistent leadership—without term limits. Their stability and success, he noted, were built on strong member confidence, experienced leadership, and continuity in management.

Mr. Malonza reminded leaders that they must always listen to members, because co-operative leaders ultimately serve at the will of their members. If members want change, they will vote for it. If they want continuity, the system should allow it.

His remarks sparked constructive debate among delegates, as many appreciated the need for flexibility that respects the autonomy and democracy of co-operatives.

A Forward-Looking Call to Action

In concluding his address, Mr. Malonza challenged co-operative leaders to take charge of the sector’s future. He urged them not to wait for problems to arise but to build institutions that are stable, transparent, well-governed, and prepared for tomorrow’s challenges.

He expressed confidence that with strong leadership, supportive laws, and an empowered membership, the co-operative movement will continue to be a pillar of Kenya’s social and economic development.