Co-operatives fight to keep Sh360b empire intact

By Kenneth Kwama

Co-operative societies are worried that the new Constitution could split their assets and devolve members savings valued at hundreds of billions of shillings to county governments. They are planning to form a giant national union to prevent such eventuality and protect their existence as national unions after next year’s General Election.

The proposed giant national alliance, which is expected to have more than nine million members, could turn into a powerful industry lobby — and surpass influence wielded by the Central Organisation of Trade Unions (Cotu) — in articulating and defending co-operators interests, and protecting the Sh360 billion assets and savings its members have cumulatively amassed over the years.

The planning, mobilisation and execution of the modalities to establish the alliance is being spearheaded by the Ministry of Co-operative Development and representatives drawn from over 1,200 co-operative societies spread across the country.

"I am not ready to see some governor in some county somewhere breaking up giant national Saccos that have been painstakingly built over the years into obscure county entities to suit county interests," said the Minister for Co-operative Development, Joseph Nyagah.

According to the Kenya National Bureau of Statistics, the co-operative movement had accumulated a total asset base valued at Sh200 billion and savings in excess of Sh170 billion, as at the end of the last financial year. This constitutes more than 20 per cent of the country’s total savings.

Various sectors

The statistics also indicate that by the end of the last financial year, there were more than 5,000 registered co-operative societies and unions across the country in various sectors of the economy.

These unions are billed to be the best, largest and most vibrant in terms of assets and savings as well as general performance on the African continent by the World Council of Co-operative Unions.

Kenya’s co-operative movement is also among the best in the world and is placed at position seven globally in terms of performance.

strong bases

Proponents of the giant union argue that Saccos with strong bases should be left intact as national entities, and encouraged to effectively compete with national commercial financial institutions and start managing national devolved funds like annual county budgetary allocations, county revenues, the Constituency Development Funds and the Women and Youth Funds, among others.

The minister was speaking at the Afya Sacco’s Annual Delegates Conference, which was attended by more than 2,500 delegates from all over the country in Nairobi.