The 4th Annual Cs Consultative Forum With Co-operative Stakeholders

By Admin

Day One of the 4th Annual Cabinet Secretary’s Consultative Forum with Co-operative Stakeholders began with a strong sense of purpose as leaders from across Kenya’s co-operative movement convened at Lake Naivasha Resort. The day focused on reviewing issues discussed during the 2024 forum, evaluating progress made, and setting the agenda for deeper engagement throughout the week.

The highlight of the day was a series of structured presentations aimed at aligning participants on sector realities, emerging policy concerns, and the strategic reforms required to strengthen the co-operative ecosystem.

1. Review of Issues from the 2024 Annual CS Forum

Dr. Victor M. Wambua (Ph.D.) opened the technical sessions with a Comprehensive Summary of the CAK Memorandum (November 2024). His presentation reflected issues raised across the main co-operative sectors and the proposed policy interventions required to address them.

He highlighted concerns in the following sectors:

  • Financial Sector (SACCOs & Co-operative finance)
  • Coffee Sector
  • Dairy Sector
  • Tea Sector
  • Rice Sector
  • Worker Co-operatives

Dr. Wambua emphasized that most challenges raised last year remain unresolved and require urgent policy and regulatory attention.

2. Key Issues and Proposed Solutions — Sector by Sector

A. Financial Sector

Delegates revisited long-standing systemic challenges affecting SACCOs and financial co-operatives. Issues highlighted included:

  • Low uptake of technology due to high costs and limited ICT skills.
  • Non-remittance and delayed remittance of member deductions by employers.
  • An outdated Cooperative Societies Act (2004) that does not reflect digital-era realities.
  • SACCO FOSAs not recognized for pension disbursement despite serving millions of Kenyans.
  • Increasing loan defaults by members exiting employment without clear recovery mechanisms.
  • Delays in Cooperative Tribunal case resolutions, affecting justice and operations.
  • High taxation limiting SACCO growth and competitiveness.
  • Restrictions on SACCOs in foreign exchange dealings, limiting diversification.

These issues formed a key part of the proposed reforms in the upcoming Cooperative Bill and policy discussions to follow over the next sessions.

B. Coffee, Dairy, Tea, Rice & Worker Co-operatives

Across the agricultural and producer co-operative sectors, Dr. Wambua noted that challenges cut across:

  • Market volatility
  • High production costs
  • Delayed payments to farmers
  • Weak governance structures
  • Inadequate value addition
  • Lack of modern processing infrastructure
  • Limited access to affordable finance
  • Fragmentation of producer groups

He emphasized the need for stronger value-chain governance, better market linkages, and supportive national policies to enhance productivity and farmer earnings.

3. Presentation by Mr. Marangu Vincent

“The Economy and Co-operative Outlook” & “Overview of the Co-operative Sector and Its Contribution to Key Industries”

Mr. Marangu Vincent delivered a detailed and insightful analysis of Kenya’s current economic situation and the positioning of co-operatives within the national development agenda.

A. The Economy and Co-operative Outlook

  • The macroeconomic environment facing high inflation, liquidity pressure, and taxation concerns.
  • The resilience of co-operatives as shock absorbers for households, SMEs, and farmers.
  • The need for co-operatives to adopt technology, diversify products, and enhance internal controls.

B. Contribution to Key Sectors

Mr. Marangu highlighted that co-operatives remain a major pillar of Kenya’s socio-economic development:

  • SACCOs mobilize over KES 800 billion in savings.
  • Agricultural co-operatives drive value chains in coffee, dairy, tea, and horticulture.
  • Worker and housing co-operatives increasingly support youth employment and urban development.
  • Co-operatives support more than 14 million Kenyans, directly and indirectly.

His message was clear: Co-operatives remain central to Kenya’s economic growth, but require strengthened policy frameworks and innovation to thrive.

4. A United Beginning

Day One successfully grounded the forum in evidence, data, and sector realities. Leaders acknowledged the issues raised in 2024, examined progress made, and agreed on the urgent reforms required across sectors.

The stage is now set for deeper discussions over the coming days on:

  • The Cooperative Bill
  • Data Protection & AML
  • Cybersecurity & ICT Innovation
  • Taxation challenges for SACCOs
  • Strengthening governance and leadership
  • Policy alignment between national and county governments

Conclusion

Day One ended with a renewed commitment from all delegates to work collaboratively toward a stronger, more resilient, and innovative Co-operative Movement. The discussions opened the way for transformational dialogue as Kenya’s co-operatives position themselves for leadership, innovation, and sustainable growth.