Structure of Co-operative Development and Marketing

Sub Sector State Corporations/Commissions/SAGAs
i. Sacco Societies Regulatory Authority (SASRA)
ii. Ethics Commission for Co-operatives (ECCOS)
iii. Co-operative Tribunal
iv. New Kenya Cooperative Creameries (New KCC)
v. * The Co-operative College which was a National Co- operative Organization has been upgraded to a University College and is now under the Ministry of Higher Education. We expect the college to be given a charter in the near future to be a full Co-operative University in Kenya
Sacco Societies Regulatory Authority (SASRA)
The Sacco Societies Act, 2008 was enacted by the Parliament to “make provision for the licensing, regulation, supervision and promotion of Sacco societies, to establish the Sacco Societies Regulatory Authority (SASRA). To make the Act operational, the Minister made the SACCO Societies (Deposit- Taking SACCO Business) Regulations, 2010.
SASRA is a State Corporation as provided under section 2(b) of the State Corporations Act (Cap. 446) of the Laws of Kenya and SASRA is established under section 4 of the Act with the mandate to:
(a) license Sacco societies to carry out deposit-taking business in accordance with the Act
(b) regulate and supervising Sacco societies
(c) hold, manage and apply the General Fund of the Authority in accordance with the provisions of the Act
(d) levy contributions in accordance with the Act
(e) do all such other things as may be lawfully directed by the Minister; and
(f) Perform such other functions as are conferred on it by the Act or by any other written law.
Ethics Commission for Co-operatives (ECCOS)
The issue of good governance has been discussed widely since the end of the twentieth century. The Government of Kenya on its part, after the year 2002, embarked on an ambitious strategy to enact laws to combat graft, which was rampant and threatening to tear institutions of government apart. The
existence of other institutions with massive public interest, for example the cooperative societies were equally threatened.
Consequently, the Government enacted various laws geared towards eradicating graft and improving governance in public institutions in 2003. These legislations include;
 The public officer Ethics Act of 2003
 The Anti-corruption and Economic crimes Act
 The Public Procurement and Disposal Act
In the Public Officer Ethics Act (Section 2) cooperative society’s staff and committee are included in the definition of a public officer, hence responsible for guarding the interests of their members, who are the Kenyan public.
Most of the public officers as defined in the public officer Ethics Act, had commissions responsible for their integrity, and discipline, some of which were already statutory, with well established administrative structures, for example;
Among the existing commissions, none was found appropriate to handle the integrity issues of the cooperative public officers. This necessitated the creation of a cooperative sector, integrity commission. By legal Notice No.120/03 (The public officer Ethics regulations 2003) the Ethics Commission for Cooperative Societies was established, to be the responsible commission for officers and employees of cooperative societies established under the cooperative societies Act, including members of the governing body of the cooperative society.
The members of the above Commission comprise officers within the Ministry only and the cooperative college. There was no stakeholder participation, which is essential in matters of integrity.
The Ministry approached the Ministry of Justice National Cohesion and Constitutional Affairs, with a view to amending Regulation 7 of the public officer Ethics Act Regulations 2003, to include stakeholder participation, to give the commission a wider scope. After numerous discussions and consultations, between the two ministries the amendment was accepted, and the Regulation now titled ‘The public Officer Ethics (Amendment) Regulations, 2010’. The composition of the Board is now drawn from,
institutions such as ICPAK, Kenya Bankers Association, Strathmore University, Co-operative College of Kenya, Co- operative Alliance of Kenya, and the Co-operative Tribunal.
Mandate
The mandate of the ECCOS is “To promote and enforce Ethical conduct and anti-corruption reforms within the cooperative movement, through responsive education, advice, investigations and financial disclosure processes”.
Duties and responsibilities of the commission will include;
 Enforcement of the cooperative society’s general code of conduct.
 Development and administration of training programmes aimed at integrating good governance and Ethical principles in the management of cooperative societies
 Awareness creation and institution of corruption prevention measures in the cooperative movement.
 Investigation on any matter that in the commissions opinion raises suspicion that conduct liable to allow, encourage or conduct constituting corruption, is about to occur.
 Investigation on any officer of the cooperative society that in the opinion of ECCOS is conducive to breach of integrity.
 Examination of the practices and procedures of work of cooperative societies in order to facilitate the discovery of corrupt practices and to secure the revision of methods of work or procedures that in the opinion of the commission are conducive to breach of integrity.
 To investigate the extent of liability for the loss of or damage to any co-operative society property.
 To make recommendations on disciplinary actions to be taken by the committee/board and the general meeting on the staff and the committee respectively among others.13
 As part of its institutional development agenda, the Ministry will establish the requisite institutions and structures to operationalize and entrench the provisions of the Ethics Commission for Cooperative Societies. For an integrated approach to addressing poor governance, the Ministry will put in place mechanisms to empower the Co-operative Tribunal to enable it enforce the cases tabled by the Ethics
Commission.
The commission may refer a matter to another appropriate body for investigation, and that body to investigate, within a reasonable time, and submit a report to the Commission on its findings.
Co-operative Tribunal
The Co-operative Tribunal is one of the functions of the Ministry of Industrialization and Enterprise Development. The Tribunal is a quasi judicial body established under the Co-operative Societies Act No.12 of 1997 as amended by the Co-operative Societies (Amendment) Act, 2004 with the sole purpose of hearing and settling co-operative disputes.
In order to qualify as a dispute for purposes of the Tribunal, the matter must concern the business of the society. That is;
 Among members, past members and persons claiming through members, past members and deceased members; or
 Between members, past members or deceased members; and the society, its committee or any officer of the society; or
 Between the society and any other co-operative society.
Tribunal services include; advisory services, assessment of claims, custody of documents, processing of documents, granting ex parte judgments, giving hearing dates and hearing disputes.
The Tribunal has decentralized services by establishing registries across the Republic, namely; Mombasa, Kisumu, Embu, Nakuru and Kakamega. Aggrieved parties are advised to seek these services at the registries nearest to them.
Advantages of the tribunal mechanism
 Fast in settling disputes
 Ensures a win-win situation
 Emphasizes justice rather than technicalities of procedure
 Enforces its own decrees
 Has qualified personnel with representation from Co- operative Movement itself.
 It is only in a tranquil and peaceful environment that business can thrive.
 Customer friendly
 Open to members of the public(transparent)
 Closer to the people through the regional registries15
 Specialization in Co-operative matters
New Kenya Co-operative Creameries Ltd (NKCC)
Kenya Co-operative Creameries (KCC) was the first co- operative to be registered on 8th February 1931 under the Co-operative Societies Ordinance.
 This society operated very well up to the year 2000 when it was sold to private investors and renamed KCC 2000.
 The New Kenya Co-operative Creameries Ltd was registered on the 25th of June 2003. Its predecessor, the Kenya Co-operative Creameries Ltd has operated in Kenya since 1925. This makes it the oldest dairy processor in the country.
 New KCC is the largest business entity in the dairy industry in East Africa involved in food industry,
processing and marketing milk and milk products.
 The business process of New Kenya Co-operative Creameries Ltd encompasses receiving of raw milk
from farmers, processing it into various milk products and marketing and selling the products for the benefit of the company shareholders.

Compiled By:

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

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