Kenya’s cooperative movement has welcomed the United Nations’ declaration of 2025 as the International Year of Cooperatives, saying the global recognition affirms the sector’s role in tackling pressing local and global challenges such as food security, housing and youth unemployment.
Speaking ahead of this year’s Ushirika Day to be celebrated on July 12, Daniel Marube, CEO of the Cooperative Alliance of Kenya and Vice chairman of the Ushirika Council, said the recognition reinforces the relevance of the cooperative model in sustainable economic development.
“The world has recognised that the cooperative model has solutions to many of today’s challenges,” Marube said.
“This year’s theme, Cooperatives Build a Better World, speaks directly to the transformational impact cooperatives have had in Kenya.”
Cooperatives and MSMEs Development CS Wycliffe Oparanya pointed out the sector’s vital contribution to national development but also raised concern over issues of mismanagement and weak governance that have eroded public trust.
“We must uphold transparency and accountability within our cooperatives,” Oparanya said.
“Too many financial losses have occurred due to poor governance, and this must be addressed if we are to grow the sector,” he added.
To tackle these challenges, Oparanya directed the Commissioner for Cooperative Development to establish a clear dividend policy, warning against the unsustainable practice of borrowing to pay dividends or declaring them when losses have been recorded.
He also called for continued investment in education, governance training and innovation to strengthen cooperative resilience, competitiveness and growth.
The CS called for collaboration with development partners to share global best practices and mobilise financing for the sector.
Marube pointed out the role of cooperatives in agricultural transformation, adding that Kenyan farmers have benefited from aggregation, processing and market access facilitated by their cooperatives.
“For example, farmers at Njuriga Coffee Factory in Nyeri are now earning up to Sh172 per kilogramme of cherry, thanks to cooperative-led aggregation and marketing. In the dairy sector, Meru Dairy pays Sh52 per litre, including bonuses, giving farmers financial stability,” he said.
Beyond agriculture, Marube said cooperatives have significantly contributed to housing, women and youth empowerment, job creation and enterprise development.
“We are proud to say that cooperatives in Kenya are financing more housing projects than all the banks combined,” Marube said. “Even informal chamas have evolved into cooperative-like platforms supporting micro and small enterprises.”
He noted that cooperatives are people-centred and sustainable business models that are owned, run and consumed by their members.
“That’s why, globally, cooperatives are seen as among the most resilient and sustainable models,” he added.
Marube noted that the sector employs over 750,000 people directly and indirectly and that new opportunities are emerging through worker cooperatives in sectors like energy, construction and engineering.
“Worker cooperatives could become one of the biggest youth employers in the next decade—if adequately supported,” he said.
He called on the government to prioritise cooperatives in national development by increasing funding, formulating supportive policies and fast-tracking the National Cooperative Bill, currently before the Senate.
“We urge MPs and senators to gift the movement by passing the Bill during this International Year of Cooperatives,” Marube said.
“We also appeal to county governments to allocate at least 30 per cent of their budgets to cooperatives and employ qualified officers to provide supervision and extension services.”
Noting that cooperatives are a devolved function under the 2010 Constitution, Marube urged counties to take a lead role in the sector’s growth and development.
In June 2024, the UN General Assembly declared 2025 as the International Year of Cooperatives under the theme “Cooperatives Build a Better World.” According to the UN Department of Economic and Social Affairs, the theme reflects the enduring global relevance of cooperatives in achieving the Sustainable Development Goals.
“The decision by the General Assembly could not be more timely,” said Li Junhua, UN Under Secretary General for Economic and Social Affairs.
“Cooperatives offer innovative solutions for sustainable development and will be critical in accelerating progress toward the SDGs as we approach 2030.”
“The second International Year of Cooperatives will be an opportunity to mobilise all stakeholders to support and expand cooperatives everywhere,” he added.
To mark the celebrations in Kenya, a series of events have been planned, including a blood donation drive held on July 3 and 4 in partnership with the National Blood Transfusion Centre and Kenyatta National Hospital.
“This reflects our identity as people-based organisations committed to saving lives,” Marube said.
A three-day exhibition will take place from July 10 to 12 at the KICC, showcasing innovations and achievements from across the cooperative movement.
“These celebrations are not just about looking back, they are a call to action,” Marube said, adding that, “Cooperatives are key partners in the government’s bottom-up economic model and national development agenda.”
As Kenya joins the rest of the world in celebrating the cooperative model, leaders in the sector are hopeful that 2025 will usher in a new era of growth, stronger policies and broader participation from all regions and communities.
