Status Of The National Cooperative Bill: Daniel Marubes Update At The 11th Kuscco Sacco Leaders Convention

By Admin

At the 11th KUSCCO SACCO Leaders Convention in Mombasa that was held on 16th Feb 2026 to 20th Feb 2026, Daniel Marube devoted his closing remarks largely to one pressing issue: the current status of the National Cooperative Bill and what lies ahead for Kenya’s cooperative movement.

Speaking on behalf of the Co-operative Alliance of Kenya (CAK), Marube outlined the legislative journey of the bill, the challenges it has faced, and the final steps required before it becomes law.


Origin and Parliamentary Progress

The National Cooperative Bill originated in Parliament following public participation. After deliberation in the National Assembly, it was forwarded to the Senate. This step was necessary because cooperatives are a devolved function under Kenya’s constitutional framework, placing oversight responsibility with the Senate.

CAK engaged extensively with the Senate Committee, holding more than four sittings to review and refine the bill. However, amendments introduced at a later stage—some from stakeholders within the sector—led to additional scrutiny and delays.


Key Amendment: Clause 61(2) on Term Limits

One of the most sensitive and debated provisions was Clause 61(2), which addresses term limits for directors of cooperative societies.

Marube noted that the Senate revised this clause, and CAK found the recommendations acceptable. The sector strongly supported retaining the rotational system for directors, arguing that it has worked effectively in ensuring continuity, renewal, and good governance within cooperatives.

This revision marked a significant breakthrough, easing one of the major areas of concern.


Mediation Between the Two Houses

Despite the progress, the bill has not yet been passed. Because the Senate’s amendments were considered substantive, the legislation must now go through a mediation process between the National Assembly and the Senate.

The Speakers of both Houses are expected to appoint members to a mediation committee. This committee will reconcile the differences and agree on the final version of the bill.

Marube described this as the final critical stage. If the mediation committee reaches consensus, the bill could be passed within a short timeframe—potentially by March. If not, further negotiations will be required.


Risk of Further Delay

Marube cautioned that time is of the essence. Previous attempts to pass cooperative sector reforms stalled due to election cycles and parliamentary adjournments, including during the tenure of former Cabinet Secretary Peter Munya.

Should the current effort fail before the next political transition, the process could be reset, forcing stakeholders to begin again from scratch. However, he expressed optimism, citing strong goodwill and determination from the current leadership in government to see the bill enacted.

The sector’s target is to have the bill passed and assented to before April.


Parallel Process: Drafting the Regulations

While awaiting final passage, CAK is moving proactively to develop the accompanying regulations that will operationalize the Act once signed into law.

Marube emphasized the urgency of assembling a team drawn from experienced cooperative and SACCO practitioners to draft these regulations. Unlike the bill itself, the regulations will not undergo full parliamentary debate but will be presented to relevant committees for concurrence.

He warned that failure to nominate knowledgeable professionals could result in regulations being drafted without a deep understanding of the cooperative business model—creating implementation challenges down the line.


A Sector Nearing a Legislative Milestone

In summary, the National Cooperative Bill is at an advanced stage in Parliament, pending mediation between the two Houses. Key contentious issues—particularly around director term limits—have largely been addressed, and the sector is cautiously optimistic about final passage in the coming weeks.

For Kenya’s cooperative movement, this moment represents more than legislative housekeeping. It is the culmination of years of advocacy and negotiation—and a defining opportunity to strengthen governance, clarity, and sustainability across the sector.