Contribution of Cooperatives to the Achievement of Kenya Vision 2030

Kenya Vision 2030 aims at making Kenya a newly, industrialized, middle income country providing high quality life for its citizens.
The Vision 2030 has three key pillars: economic, social and political. Co-operatives contribution to the vision is guided by the seven internationally recognized co-operative principles as illustrated above.
The Ministry of Industrialization and Enterprise Development in its current strategic plan embraces measures that will contribute to the implementation of Vision 2030 Flagship projects as well as
Medium Term plans. The co-operative movement in particular will play the following key functions in delivering Vision 2030:
The Economic Pillar
The Saccos will continue to mobilize savings, developing demand driven financial products which encourage members to save additional resources. This is in line with economic pillar whose key
mandate is to mobilize savings for Kenya’s investment needs. In this regard the Ministry has focused on registration of Youth Co- operatives, transport, Jua kali Saccos and enhancing management of the already existing Saccos through adoption of best accounting, management and governance practices.
In the retail trade Vision 2030 envisages the transformation of informal sectors into an efficient, multi-tiered and production of diversified product range. In this regard the Co-operatives have transformed Jua Kali informal sector with particular reference to transport, community based interest groups, Youth groups into organized Co-operative enterprises.
In the agro-processing sector the Co-operatives are already doing processing and the same is geared towards industrialization. The key Co-operatives in this area are the successful Githunguri dairy,
Limuru diary, Meru dairy which are processing and marketing their products in Supermarkets in Nairobi and other areas. Meru Central Union is manufacturing animal feeds products and milling maize flour for the local market.
The Kenya Co-operative Coffee exporters Ltd is assisting the farmers to access international market but is geared towards processing and marketing Kenya Coffee as finished products in the international market.
Social Pillar
The social pillar under Vision 2030 envisages to transform the eight social sectors namely education and training; health; water and sanitation; environment; housing; gender, youth and sports.
The Co-operative Movement and in particular the savings and credit Co-operative Societies (Saccos) mobilize billions of shillings to finance education from Primary to University through affordable loans to the members. In addition they provide credit facilities to meet agricultural, medical and legal services. In
housing, Co-operatives facilitate members to pool resources to buy plots and to finance construction.
The National Co-operative housing Union (NACHU) and Kenya Union of Savings and credit Co-operative society Ltd, through housing scheme are financing long term mortgages for individuals and societies to put up houses. Some of the land mark buildings in Nairobi e.g. Harambee, Imenti and Ukulima Plaza are owned by co- operatives.
The Co-operative active participation complements government efforts of putting up 150,000 housing units in urban areas. The Co-operative will play pivotal role in realization of the social pillar in Vision 2030.
Political Pillar
The Vision 2030 0n the political pillar envisages to create “a people centred and politically engaged open society”. The Co- operatives are economic based and are driven by economic needs. In this regard the Co-operative brings people together irrespective of class, social status in life, ethnicity or other
considerations. The Co-operatives have institutionalized democratic culture through engagement in free and fair elections. The Co-operatives therefore form the bases and the building blocks for a cohesive society and enhances issue base and politics economic survival. 10.0 Emerging Issues in Co-operative Marketing
 Value addition is done by some co-operative societies: e.g. New Kenya Cooperative Creameries (New KCC), Githunguri, Meru Central and Kenya Coffee Co-operative Exporters (KCCE). These co-operatives will continue value addition under vision 2030 in order to control larger part of product value chain.

 Co-operatives will also play a vital role in input supply and distribution. Through Kenya Farmers Co-operative Union (KFCU) they will participate in bulk fertilizer importation and distribution using the existing infrastructure (stores, vehicles and machinery) owned by co-operatives and unions.
 Promotion of producer-based groups/co-operatives. In order to address the problems of fragmentation and informality that exist in supply chain, the ministry will encourage linkages between the formal market operators (wholesale and retail hubs), e.g. supermarkets and producer co- operative organizations.
 The development of Diaspora co-operatives (SACCOs) – Already the Ministry has promoted two Diaspora SACCOs in America and United Kingdom (UK) in order to tap enormous resources generated by this subsector to channel into the country’s investment opportunities.
 Matatu SACCOs- In order to streamline and promote viable investments in transport subsector, the Ministry in collaboration with the Ministry of Transport and Infrastructure has already registered 600 Matatu SACCOs in the country.

 Sharia Compliant Co-operatives. In order to promote and tap investments from the Muslim community, the Ministry has established Sharia compliant co-operative by-Laws to roll out
products geared towards this segment market. The Sharia compliant co-operative policy is underway. The following 4 Sharia Compliant Co-operatives are already registered; Cofi Sacco Ltd, Cresent Takaful Sacco, Taqwa Sacco and PumwaniRiyadha Sacco Ltd.

 Housing Co-operatives- With the country experiencing an acute shortage of housing, especially for the low-income segment of the population in urban settlements, the Ministry has promoted 440 housing Co-operatives. However, these housing programmes have stagnated due to lack of affordable mortgage facilities and long term lending to assist in housing development. Besides; poor planning, high cost of
construction and building material and the complex land administration mechanisms discourage investors/co- operatives in committing funds for housing projects.
 Youth Co-operatives- The Ministry in collaboration with USAID, has registered and supported 27 County Youth Bunge SACCOs in order to engage the youth in gainful business enterprises. These SACCOs have already mobilized Ksh. 10 million savings and loaned out Ksh. 7 million. In January 2014 USAID will inject Ksh.8 million grants in form of a revolving fund to this programme.

Compiled By:

Emily M. Gatuguta, OGW
Peter Kimotho
Samwel Kiptoo
Date: Tuesday, January 14, 2014

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One Response

  1. I like it. It’s educative

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