Cooperative movement in Kenya validates the Draft National Cooperatives Policy 2019.
CS PETER MUNYA'S SPEECH DURING THE CO-OPERATIVE POLICY VALIDATION WORKSHOP AT CROWN PLAZA HOTEL ON 3RD MAY, 2019.
Chair, County Cooperative Forum,
Principal Secretaries
CEO, Council of Governors
CEO, Intergovernmental Relations Technical Committee
Chairman, County Assembly Forum
Chairman, Kenya Law Reform Commission
CECMs in charge of Cooperatives
Distinguished Guests
Ladies and Gentlemen
INTRODUCTION
I take this opportunity to welcome you all to this meeting for the validation of the draft cooperative policy 2019; My Ministry through the State Department for Cooperatives has finalized the formulation of the policy. This has been done through a consultative process that involved stakeholder participation in accordance with article 10 (2) (a) of the constitution.
THE COOPERATIVE MOVEMENT TODAY:
The Co-operative Movement in Kenya has mobilized savings to the tune of Ksh. 630 B, commands an asset base of Ksh. 816 B and granted members loans to the tune of Ksh.558 B.
CHALLENGES
However, I am aware of the challenges being experienced by some Saccos in the country which include non-remittance by employers, massive investment in non-core activities, and over dependence on external funding, high non-performing loans, obsolete technology and cyber crime amongst others.
POLICY FRAMEWORK
The Policy framework is part of the National Government’s constitutional responsibility to provide capacity and technical advice to the county governments so as to enable them regulates cooperative activities in the counties. The Draft policy document that we are about to validate today replaces Sessional Paper No. 6 of 1997, on “Co-operatives in a Liberalized Economic Environment”.
The policy highlights the historical background of the co-operative sector worldwide and more specifically in Kenya and explains why it remains an important contributor towards industrialization and economic development of the country as expounded in Kenya Vision 2030.
OBJECTIVES OF THE POLICY
The objective of this policy is to promote sustainable and competitive co-operative societies for an enhanced role in industrialization and improved social economic development. With the following specific objectives
a) Align the co-operative function with the CoK, 2010,
b) Align the implementation of Kenya Vision 2030, and other national and international initiatives.
c) Promote sustainable competitive co-operative enterprise in Kenya
d) Promote new ventures, partnerships and financing opportunities in the co-
operatives sector in Kenya.
e) Establish an institutional framework for enhancement of cooperation, consultation and coordination of co-operatives management that provides for self-regulatory mechanisms within the sector.
f) Promote housing and agricultural based-co-operatives in order to enhance
provision of affordable housing and food security in Kenya.
g) Develop the capacity of co-operatives through training, research and use of modern technology in the sector
h) Mainstream issues related to climate change, special interest groups and human rights in co-operatives.
PROCESS
I wish to thank the Principal Secretary for State Department for Cooperatives for guiding the process to the end. I appreciate the cooperation and support of the County Governments through the Council of Governors, County Forums and all other stakeholders, Government Agencies such as the Intergovernmental Relations Technical Committee, Kenya Law Reform Commission and the state law office In addition, the Cooperative Movement through its leadership for their participation in formulating this policy.
THEME OF THE POLICY
The theme for the policy is, “Promoting Co-operative Societies for Industrialization; This presents a rallying call for co-operatives to take the responsibility and lead in the industrialization of the country as envisaged in Kenya Vision 2030. It is based on the realization that there are many benefits that will accrue through a well-structured co-operative system. The benefits include: equitable distribution of wealth, job creation especially in rural areas, savings mobilization, decent and affordable shelter and access to education and health care, increased producer prices for raw materials, market systems development, indigenization of the economy, and the growth of exports, amongst others. In addition, the co-operative sector plays an important role in value addition through increasing business development services and adopting ICT and other appropriate technologies.
The policy orients cooperative enterprises to play a key role towards industrialization of the nation for growth and development with a focus to the rural areas of the country where 80% of the population reside.
Policy aligns itself to the constitution and the various national development initiatives like Agenda Four principally because cooperatives have critical mass to help achieve sustainable development of the nation.
Policy Interventions:
The Draft policy being validated today has the following interventions:
1. Review of the legal and regulatory framework to the Constitution of Kenya
2010 and address the dynamic business environment;
2. To promote Cooperative production, value addition and marketing in order
to improve returns to members;
3. To enhance financial deepening and investments through cooperatives;
4. To enhance efficiency in regulation and coordination of cooperative activities;
5. To enhance good governance to improve service delivery and increase members trust in cooperatives;
6. To provide reliable data and information and to empower cooperative officials and members with relevant skills and competencies;
7. To promote adoption of ICT in cooperatives;
8. To mainstream emerging and cross cutting issues in cooperatives;
In concluding, let me once again thank all of you present here today for finding the time to attend this crucial meeting to validate the National Cooperative
Development Policy, 2019. I also congratulate the entire policy team for their great effort and wish you all a fruitful session and discussions during this validation workshop.
It is now my singular pleasure to declare this workshop officially opened.
Thank you and May God bless you.