SPEECH BY HON. ADAN MOHAMED, EBS, CABINET SECRETARY FOR INDUSTRIALIZATION AND ENTERPRISE DEVELOPMENT DURING THE 91ST INTERNATIONAL COOPERATIVE DAY CELEBRATIONS ON 6TH JULY 2013

Co-operative Leaders
Distinguished Guests
Ladies and Gentlemen
It gives me great pleasure to join you today to celebrate the 91st International Co-operative Day, locally known as Ushirika Day. This is a special day that enables co-operators to reflect on the importance of the co-operative movement in Kenya and the rest of the world. I am glad to note that the theme of this year’s event is “Co-operative enterprise remains strong in times of crisis”.This positions co-operatives as strong and sustainable enterprises that are able to survive even during hard economic times. This is because the Co-operative Business Model ensures full participation of members across all cultures, social and ethnic groups, as well as economic strengths.
Cooperatives generally mobilize both human and financial capital from their members.  It further explains why cooperative in both developed and developing economies were not adversely affected by the global economic meltdown which affected major economies.
Fellow Cooperators
The Cooperative Movement in Kenya continues to contribute enormously towards the socio-economic welfare of our people.  As you are aware, the activities of the Movement cuts across all sectors of our economy, and it impacts greatly areas such  as Finance, Agriculture, Transport, Health, Education, Housing , Youth  among others.
The Cooperative Movement in Kenya is rated 1st in Africa and 7th globally, according to the International Cooperative Alliance.  It continues to grow impressively as an alternative model of doing business.  To date the Cooperative Department has registered slightly over 15,000 cooperative societies .
The Sacco sub-sector continues to play a key role in the development of our economy through provision of financial access to many Kenyans are unbanked.  The sub-sector has currently mobilized domestic savings to the tune of Ksh.400 billion that is 33% of national savings and boasts an asset base of Ksh.300 billion.  It is projected that the savings will reach Kshs.700 billion mark with the registration of Saccos for Kenyans in the diaspora.  The department last year registered two such Saccos in the United States of America and the United Kingdom.  We are also targeting to register more Saccos in countries with high concentration of Kenyans.  This initiative will assist Kenyans in the Diaspora to make structured remittances and facilitate investment at home.
In understanding the role the movement plays in delivery of vision 2030, the Saccos mobilize savings, finance economic activities and bring together people hence meeting all aspects of the economic, social and political pillars under vision 2030.
Ladies and Gentlemen
The core mandate of the ministry of Industrialization and Enterprise Development that is incharge of Co-operatives is to promote the growth and development of the Co-operative Movement in all sectors of the economy. It is gratifying to note that the co-operative philosophy has been inculcated in virtually all economic and social enterprises countrywide.
In conformity to the requirements of the constitution, my ministry has already posted County Co-operative Commissioners and County Co-operative Directors of Audit to all the 47 counties. I urge co-operative leaders to engage these officers in the revitalization of County Co-operative unions to play the vital role in farm input supplies and distribution. This will make farmers enjoy the economies of scale while at the same time ensuring availability of inputs on time and stabilizing prices. Besides these efforts, we have also registered the Kenya Farmers Co-operative union whose main agenda is to support farmers through the supply of affordable farm inputs such as fertilizers and animal feeds.
The Ministry has also promoted the formation of County co-operative Development Committees to coordinate the cooperative agenda in the various Counties.
Distinguished Guests
Value addition to agricultural produce has been prioritized by the Government in Vision 2030. The future of our agricultural co-operatives lies in aggressively undertaking value addition of various produce including coffee, tea. Cotton, pyrethrum, horticultural crops, livestock and fisheries.
It is no longer feasible to continue marketing our produce in their raw form as has been the case over the years. The success in value addition has been more pronounced in the dairy sector where dairy co-operatives like Githunguri have increased returns to farmers more than ten-fold. Value addition therefore remains the best option for enhanced service delivery to our farmers and overall success of the agricultural co-operatives.
Ladies and Gentlemen
The Co-operative Development Policy explores measures aimed at empowering young people to rise from unemployment to entrepreneurship and enterprise development. To achieve this, we aim to empower the youth especially through promotion of youth cooperatives, capacity building and financing of projects managed by youth. The government offers financial support to these projects through the Youth Enterprise Fund. Apart from these the department of co-operatives has made specific interventions in the following areas:-
·        Linking Women and Youth to Youth and Women Enterprise Development Funds from which they can access credit at affordable interest rates
·        Due to limited involvement of Youth in leadership positions, the department has undertaken to promote the formation Youth led Co-operatives as an affirmative action
·        The bicycle and motorcycle transporters known as Boda Boda operators have been encouraged to form SACCOs and other types of cooperatives from where they can access credit
·        The department of Co-operative Development in partnership with the Ministry of Transport has endeavored to instill some order in the Matatu industry by promoting and registering matatu saccos
·         Through the partnership and in collaboration with our Youth Desk office, the 25 registered Youth Bunge SACCOs have been taken through three levels of training covering the importance of co-operatives, Management and Governance of SACCOs and Credit Management
Ladies and Gentlemen
As you are aware, the United Nation General Assembly declared the year 2012 as the International Year of Co-operatives in recognition of the importance of the Co-operative movement globally. The Government acknowledges that co-operative organizations help this country to revitalize the agricultural, financial sectors and  the  rural  economy. It  is clear  that, while  Co-operatives  may  not be  the only  solution  to   Kenyans problems, they  are  certainly  part  of the  solution. Kenyans are expected to fully embrace the culture of savings through SACCOs and to work together on the basis of the International Co-operative Principles and Values, as well as their objectives and goals.
Ladies and gentlemen,
Let me now turn my attention to the role of the Government. You are aware that the Ministry has promoted a vibrant and co-operative sector through an enabling Policy and Legal framework for the growth of a sustainable socio economic development in Kenya. In this regard the Department has in the past realized achievements which include:
·        The establishment of  the  Sacco  Societies Regulatory  Authority (SASRA)  to regulate the  large  financial Saccos;
·        The establishment of the Ethics Commission for Co-operative Societies (ECCOS) to address governance matters.
·        Revitalization of the  Co-operative Alliance of Kenya (CAK), the  Apex body of  co-operatives,  to enable  it play a more  critical  role  in modernization  of the  co-operative  sector including  participation  in serious  investments;
·        Promotion and registration of Matatu Saccos
·        Promotion and registration of County Youth Bunge Saccos
·        Promotion and registration of Sharia compliant co-operatives
·        Promotion of and registration of Diaspora co-operatives
·        Revitalizing key commodity co-operatives in areas such as dairy, coffee, cotton and horticulture.
·        Formulation of Guidelines for Co-operative Development Fund
·        The Government is also in final stages of developing the Human Resource Policy for Co-operative Movement.
Ladies and gentlemen:
As you are aware some co-operatives are faced with a few challenges as they struggle for survival. Some experience deficiency in their management, leadership and governance not to mention lack of ethics and integrity.  Similarly some of them lack adequate resources to provide quality services, as well as invest in modern technology.
However I am happy to note that a lot of improvement has been made and notable progress continues to be made in these areas.
Finally, I wish to assure the co-operative movement of the Government’s commitment in providing an enabling environment for the sector, to enable it continue playing its vital role not only in serving the members but also in the economic development of our country.
With these remarks, I wish the cooperators successful Ushirika celebrations.

 

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6 Responses

  1. […] Speech by Hon. Adan Mohamed, Ebs, Cabinet Secretary for Industrialization and Enterprise Development… (funnyardstick.wordpress.com) […]

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  3. […] Speech by Hon. Adan Mohamed, Ebs, Cabinet Secretary for Industrialization and Enterprise Development… (funnyardstick.wordpress.com) […]

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  5. […] Speech by Hon. Adan Mohamed, Ebs, Cabinet Secretary for Industrialization and Enterprise Development… (funnyardstick.wordpress.com) […]

  6. That is an incredible work by the ministry and cooperative movement to realize better living standard of common citizens

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