Deputy president Kithure Kindiki has announced that the government is committed to fast-tracking the enactment of a new Cooperatives Bill aimed at transforming Kenya’s cooperative movements.
Speaking during the 104th Ushirika Day celebrations at Uhuru Park on Saturday, Prof. Kindiki said the proposed law, currently before Parliament, is expected to be signed by President William Ruto ushering new reforms that will modernize the country’s cooperative sector.
The Deputy President said the legislation will provide a new legal framework to improve accountability, strengthen governance structures and accelerate the digitization of cooperative societies, making them more efficient and responsive to members’ needs.
“Within a month, the Bill will be signed into law by the President so that we can modernize this sector, improve transparency and governance as well as make it digitally conversant,” Prof. Kindiki said.
He noted that the Kenya Kwanza administration has placed cooperatives at the heart of its economic transformation agenda, describing the movement as one of the country’s strongest vehicles for wealth creation, financial inclusion and grassroots development.
The second in command said the establishment of a stand alien Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs) demonstrates the government’s commitment to revitalizing the sector and unlocking its full economic potential.
He lamented that the new Cooperatives Bill, together with ongoing reforms targeting Savings and Credit Cooperative Organizations (SACCOs), will strengthen public confidence by promoting sound leadership and safeguarding members’ savings.
According to the Deputy President, more than eight million Kenyans have entrusted SACCOs with deposits exceeding Sh1 trillion, making it essential to put in place stronger oversight mechanisms that protect members’ investments.
He emphasized that cooperatives continue to play a critical role in improving livelihoods across the country by empowering farmers, workers and entrepreneurs.
Kindiki noted through cooperative societies, farmers have been able to increase production, access better markets and negotiate fair prices for their produce, while workers have mobilized savings, accessed affordable credit and invested in businesses.
Thousands of families have also relied on cooperatives to educate their children, construct homes and improve their living standards.
Prof. Kindiki said the government is committed to creating cooperative institutions that are financially sound, professionally managed and resilient enough to support the implementation of the Bottom-Up Economic Transformation Agenda.
He challenged cooperative leaders to embrace integrity, professionalism and innovation in managing members’ resources, saying strong governance will be key to sustaining public trust and attracting more Kenyans into the movement.
The Deputy President also called for increased participation of young people and women in cooperative societies and leadership positions, noting that the future growth of the movement depends on the inclusion of all segments of society.
He urged the youth to embrace cooperatives as platforms for entrepreneurship, wealth creation and self-employment rather than relying solely on formal jobs.
“As government continues implementing flagship development projects, cooperatives will play an even bigger role in increasing agricultural productivity, supporting MSMEs, expanding affordable housing, promoting Universal Health Coverage and driving the digital economy,” he said.
Prof. Kindiki added that cooperative societies provide one of the most practical solutions to youth unemployment by enabling young people to pool resources, mobilize capital, establish enterprises and become job creators.
He further commended the Ministry of Cooperatives for spearheading reforms that are streamlining the sector and pledged to push for increased budgetary allocation to strengthen cooperative societies across the country.
He also revealed that the government aims to double cooperative membership from the current 14 million members as part of its broader strategy to expand financial inclusion and accelerate national development.
He lauded SACCO members for fostering a strong culture of savings and productivity, saying their contribution continues to play a significant role in Kenya’s economic growth.
“I look forward to greater development in our country with the cooperatives sector playing a bigger role in expressing confidence that the upcoming reforms will position cooperatives as stronger drivers of inclusive economic growth and shared prosperity,” noted Kindiki.
Edited by John Majau
