Types of cooperatives in kenya cooperative movement in. Savings and credit cooperatives saccos play a key role in the mobilization of resources and therefore the subsector occupies a strategic position in the socialeconomic development of kenya and the realization of the national vision 2030 mocdm, 2012. An act of parliament relating to the constitution, registration and regulation of cooperative societies and for purposes incidental thereto act no. Gunga, chair of department of educational foundations, university of nairobi, kenya, email. Section five discusses the challenges facing cooperatives and section six summarises and concludes the paper. Factors influencing performance of savings and credit. Kenya law resource center is published as an information resource only. The cooperative movement in kenya and its potential for. This series contains books written by researchers at the centre for development research, copenhagen. The kenya national federation of cooperatives knfc board 2007, observed that the cooperatives in kenya are organized into service and producer cooperatives. The service cooperatives are responsible for procurement, marketing.
International labour office cooperative cooperative movement cooperative development kenya. In the farm input supply chain, cooperatives form a strong link between manufacturers, distributors and consumers of goods and services. The first cooperative society in kenya was registered in 1908 and was the preserve of white settlers to develop and market their agricultural crops. Such analysis must be based on a correct understanding of both the type of society and cooperative in question and the prospects for smallscale farming in kenya. National cooperative housing union ltd, nachu plaza, no. The cooperative movement in kenya and its potential for enhancement of ict livelihoods by samson o. Rethinking the role of cooperatives in african development. In spite of the fact that kenya controls a very small and declining share of global coffee exports, we believe there is a market opportunity for kenya to pursue a differentiated coffee strategy, given the. The international cooperative alliance ica is an independent, nongovernmental organization established in 1895 to unite, represent and serve cooperatives worldwide. In kenya every one person in five is a member of a cooperative society. That act operates alongside the cooperative society rules published as legal notice no.
This section explains what cooperative principles are, how they evolved, and what principles are followed today. The cooperatives in kenya are organized into service and producer cooperatives. The producer cooperatives objectives are to promote the use of modern technology and contribute to national development through production. In india primary agricultural cooperatives credit societies pacs came into being after. Organizational challenges and the institutional environment. The modern history of cooperatives started with the rochdale society of equitable pioneers, founded in 1844. Since the material on this site is provided as information only, and laws continuously change from time to time, the author of this website neither expressly nor impliedly. The aim is to investigate the ways in which cooperatives can act as agents towards sustainable community development. Whether the members are the customers, employees, users or residents, cooperatives are democratically. Wanyama of maseno university in kenya, prepared as part of ilos contribution to this initiative.
Laws of kenya cooperative societies act chapter 490 revised edition 2012 2005 published by the national council for law reporting with the authority of the attorneygeneral. History and organization of cooperative development and. Apex, tertiary nacos, secondary countydistrict unions and primary. Current 1991 government policy recognizes the role which cooperatives and other rural organizations can play in the. Public disclosure authorized agriculture and rural. The cooperative alliance of kenya limited cak was registered on the 22nd december, 2009 as the national apex. Bager, torben, marketing cooperatives and peasants in kenya 1 16 pp. All books are in clear copy here, and all files are secure so dont worry about it. Whereas valentinov 2007 emphasised the strategic function of the agricultural cooperatives in fostering the division of labour in agriculture, aiming at maintaining a familyfarm model to avoid.
It provides a global voice and forum for knowledge, expertise and coordinated action for and. In the recent past the farmers, with the encouragement of the cooperatives ministry, created the kenya cooperative coffee exporters limited kcce. In kenya, cooperatives are responsible for 45% of the gdp and 31% of national savings and deposits. According to kenya national federation of cooperatives knfc board 2007, the cooperative movement in kenya has had enormous socioeconomic impact on. Pdf the cooperative movement in kenya and its potential for.
Effects of porters generic competitive strategies on the. The cooperatives also create and maintain employment. In 2010, kenya changed its entire constitution after many years of advocacy, activism, and frustrations. Cooperative development in kenya augustus mutemi salient provisions of the 1996 policy framework paper on economic reforms that are.
Cooperatives are peoplecentred enterprises owned, controlled and run by and for their members to realise their common economic, social, and cultural needs and aspirations. Apex cooperative organization the apex cooperative organization today in kenya is the co operative alliance of kenya cak. Cooperatives may take the form of companies limited by shares or by guarantee, partnerships or unincorporated associations. Pdf cooperative development in kenya augustus m u t e m i. They have 70% of the coffee market, 76% dairy, 90% pyrethrum, and 95% of cotton. Baarda university of arkansas, llm course, 2007 3 c oo pe ra tiv e s in come was bas ed on in terpretatio n of generally applic able tax pri ncipl es to patronage refunds. This brief summarizes the main findings of a forthcoming report of the same title, by frederick o. Section three assesses the role and mechanism of cooperative societies. Whether the members are the customers, employees, users or residents, cooperatives are democratically managed by the one member. This study focused on evolution and growth of coffee cooperative societies in kipkelion, kericho county from the period 1923 2012. Globally, cooperatives provide over 100 million jobs around the world, 20% more than multinational enterprises. Ministry of agriculture ministry of agriculture, livestock. The challenges of lack of sustainability of cooperatives.
His data shows that an estimate of 79433 people working in cooperatives in uganda, 66252 in zambia and 1,803,455 in kenya in 2009. The turnover of the cooperative in 2005 was over one billion kenya shillings, with a share capital of over 100 million kenya shillings. Agricultural marketing cooperatives cooperative information report 45, section 15 marketing cooperatives are found in every region of the united states and handle most types of farm. The overall objective of each report was to generate information on the present status and development i. An investigation of the impact of cooperative movement in rural. The law governing cooperatives in kenya is now contained in the cooperatives society act of 1997 as amended by legal notice no. This act may be cited as the cooperative societies act. Pdf cooperative development in kenya augustus m u t.
The cooperative movement in kenya is one of the nationally organized institutions available for all cadres of persons. The cooperative movement in kenya is organized into fourtier system consisting of. Knfc kenya national federation of cooperatives kpsu kenya planters cooperative union ocdc overseas cooperative development council mafisa microagricultural financial institutions of south africa medcs more economically developed countries ncasa national cooperative of association of south africa. In kenya the history of cooperatives date back to 1908 and has continued to. The ability of agricultural cooperatives to improve the welfare of smallholder farmers in africa is mixed and contextual. Apr 07, 2014 the cooperative movement in kenya is organized into fourtier system consisting of. Wanyama, school of development and strategic studies, maseno university, kenya. Read online ministry of industry, trade and cooperatives kenya. Interpretation in this act, except where the context otherwise requires agricultural produce means any produce or article produced or obtained by the work or industry of members of a cooperative society or marketed by a cooperative society, whether the produce be of agriculture. To promote thrift among its members by affording them an opportunity for accumulating their savings and deposits and create. Tea contributes immensely to socioeconomic development of the country. History cooperative efforts have occurred throughout history.
The recognition of cooperatives as crucial means for poverty alleviation and, therefore, african development has been widely acknowledged. They accept deposits to members and grant them loans at reasonable interest rates in times of need. Section four highlights the steps involved in starting a cooperative. The cooperative alliance of kenya limited cak was registered on the 22nd. The role of cooperative societies in economic development. The expansive activities of the cooperative are taken care of by a staff of about 300 employees who are recruited on the basis of an employment policy. The modern history of cooperatives started with the. Since early man cooperated with others to help kill large animals for survival, people have been cooperating to. Download ministry of industry, trade and cooperatives kenya. In kenya the history of cooperatives date back to 1908 and has continued to grow since then. Pdf cooperative development in kenya augustus m u t e.
A quick appraisal of the situation reveals that cooperatives have largely survived the market forces and continued to grow in number, membership and income. An investigation of the impact of cooperative movement in. It was registered on 27th september 1973, to advocate for a level environment in which saccos can do business, and provision of quality, diversified, innovative and marketdriven. None of the material on this site is expressly or impliedly meant to provide legal advice to you. The cooperative facility for africa coopafrica is a regional technical cooperation programme of the ilo contributing to the achievement of the millennium development goals and the promotion of decent work in africa by promoting selfhelp initiatives.