Proposed advisory council to strengthen cooperatives' governance

Economic advisory council will serve as the highest advisory body to CAK and provide strategic guidance on policy and sector-wide reforms.  [Courtesy]

Leaders in the cooperative movement are considering the establishment of an economic advisory council of chairpersons to enhance governance, coordination and policy engagement across the sector. 

The proposal was made during a two-day meeting convened by the Cooperative Alliance of Kenya (CAK), which brought together chairpersons and vice chairpersons from savings and credit cooperatives (Saccos), as well as the agricultural, housing, consumer, and other cooperative subsectors. 

The stakeholders believe that, if established, the council will serve as the highest advisory body to CAK and provide strategic guidance on policy, governance standards, and sector-wide reforms. 

CAK Chairperson McCloud Malonza said the initiative aims to strengthen advocacy, leadership and representation within the cooperative sector.  “We are working on strengthening advocacy, governance, and representation across the country’s cooperative movement. Our discussions focused on improving the relationship between boards and management to reduce friction and enhance service delivery to members,” he said. 

Malonza noted that a key priority is to ensure that cooperatives operate efficiently, with clear separation between governance and management roles, while maintaining accountability to members. 

He said the movement is also developing a five-year strategic direction focused on governance reforms, leadership training and improved coordination across key economic subsectors, including agriculture, dairy, coffee, tea, fisheries and construction.

“We are setting a five-year strategic direction for the movement aimed at strengthening governance, leadership training, and coordination across sectors,” he explained.

Malonza further emphasised the need for clearly defined roles for chairpersons and vice chairpersons, noting that an effective leadership culture is critical in shaping ethical and accountable cooperatives.

CAK proposes that the council will operate in a consultative capacity, providing policy direction.