Cooperative Alliance of Kenya chairperson McCloud Malonza /HANDOUTKenya's cooperative movement is seeking to establish an Economic Advisory Council that will bring together leaders from Saccos, agricultural, housing, consumer and other cooperative societies to strengthen governance, influence policy and provide a unified voice on economic matters.
The initiative comes at a time when the sector, which serves millions of Kenyans and controls assets worth hundreds of billions of shillings, is grappling with governance challenges, regulatory reforms, technological disruption, and a rapidly evolving economic environment.
The proposed council, championed by the Cooperative Alliance of Kenya (CAK), will comprise chairpersons and vice-chairpersons drawn from savings and credit cooperatives (Saccos), agricultural, housing, consumer and other cooperative subsectors.
CAK chairperson McCloud Malonza said the council is intended to strengthen advocacy, leadership and representation across Kenya's cooperative sector while ensuring that cooperatives are better positioned to respond to emerging economic opportunities and challenges.
If established, the council will serve as the highest advisory organ to CAK, providing strategic guidance on policy, governance standards and sector-wide reforms.
"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," said Malonza during a
CAK meeting.
He said one of the key priorities is ensuring cooperatives operate efficiently through a clear separation of governance and management functions while maintaining accountability to members.
The cooperative movement is also developing a five-year strategic plan focused on governance reforms, leadership development and improved coordination across major economic sectors 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," Malonza said.
He said effective leadership begins at the top
and called for clearly defined roles for chairpersons and vice-chairpersons to
cultivate a culture of ethical and accountable governance.
According to CAK, the proposed Economic Advisory Council will operate in a consultative capacity rather than engaging in day-to-day management.
Its role will be to provide policy direction, address systemic challenges affecting cooperatives and ensure inclusive representation across regions and cooperative subsectors.
The council is also expected to play a key role in ongoing discussions on the proposed Cooperative Bill and other regulatory reforms affecting the movement.
Kenya's cooperative sector contributes an estimated 45 per cent of the country's Gross Domestic Product (GDP), mobilises billions of shillings in savings and serves more than 14 million members directly and indirectly through over 24 million Kenyans, according to the Economic survey.
Malonza said cooperatives have experienced rapid growth over the years, but some governance challenges have emerged during the transition.
"Cooperatives have grown and there are many challenges that have come with that growth because the transition has not always been handled properly. We do not want these challenges to undermine the progress the movement is experiencing," he said.
He pointed out the need for boards and management teams to work together in advancing members' interests while respecting their distinct responsibilities.
"As we undertake advocacy, we must do it together, both management and the board. Chairpersons and vice-chairpersons play a critical role in leadership and governance because they set the strategy and the tone at the top. They need the right training and support to understand that their role is to serve members and not personal interests," he said.
Malonza said the proposed council would champion the interests of all cooperatives without discrimination while promoting inclusivity, gender balance and regional representation.
"We want to ensure that the challenges members face are brought to the forefront and addressed, and that there is feedback from both sides. Planning should be a two-way process that ensures every sector is represented and satisfied. When we discuss issues such as the Cooperative Bill, it should reflect the aspirations of all sectors without leaving anyone behind," he said.
“The proposed council would provide a unified voice for the sector on critical issues including governance standards, digital transformation and competitiveness. Effective leadership is critical to the success of cooperatives.
Leaders must be equipped to guide institutions through economic challenges while advancing members' welfare," said CAK Chief Executive Officer Daniel Marube.
