Co-operative leaders told to embrace technology

Co-operative sector leaders have been urged to fast-track the adoption of technology by for example, digitising their operations to enhance resilience in the face of emerging challenges, business uncertainties, and stiff competition from other economic players.

Simon Chelugui, Cabinet Secretary for Co-operative and Micro, Small, and Medium Enterprises (MSMEs) believes that enhancing resilience will equip leaders with the necessary skills and strategies to transform challenges into opportunities for growth and innovation. He said co-operative societies have made tremendous growth since the 1960s, significantly contributed to by chief executive officers.

“However, considering current global trends and the stiff competition from other players, managers need to pursue avenues geared towards making their institutions more resilient,” Chelugui said during the Annual National Co-operatives Chief Executive Officers Workshop in Mombasa.

The theme of this year’s workshop organised by the Co-operative Bank of Kenya, is “Leading with Resilience.” Chelugui noted that Kenya’s co-operative movement is leading in Africa in terms of deposits, assets, and membership, and ranks seventh globally. “We need transformative leaders ready to maintain and advance this position,” he added.

Capital build-up

The CS emphasised that exploiting opportunities offered by the latest technology, product development, and enhancing capital build-up will ensure co-operatives are well-prepared to face future disruptions, maintain member trust, and continue contributing to their communities’ socio-economic development.

“Through resilient leadership, co-operatives can become beacons of economic stability and progress in an ever-changing world. The government is unwavering in its commitment to providing an enabling legal and policy framework for co-operatives to thrive,” Chelugui said.

The CS identified the development of the Co-operatives Bill No. 7 of 2024 as a significant legislative milestone.

The Bill, currently in its second reading in the National Assembly, aims to provide a comprehensive framework for the regulation of co-operatives by both levels of government, promoting self-regulation, enhancing governance tools, and increasing efficiency and effectiveness in service delivery.

Legislative efforts

Chelugui expressed optimism that the Bill will be enacted into law before the end of next month and launched by the President in July during this year’s Ushirika Day celebrations. In addition to legislative efforts, the CS highlighted ongoing institutional reforms targeting various co-operative production value chains, including coffee, dairy, and cotton.

Co-operative Bank Group Managing Director Gideon Muriuki emphasised the need for technical leaders of Saccos and other co-operative societies to adopt innovative business models to achieve impressive results.

“Building the resilience of co-operative societies is not a one-day achievement but requires a chief executive officer to lead from the front. Technical managers need to work on transformation policies and sustain them,” he said.

Muriuki added: “Co-operative Bank has maintained tremendous growth for over two decades due to regulatory compliance and strict adherence to all prudential guidelines. Co-operative societies need a strong governance structure, a united board of directors, and sound strategic plans.”

He urged society managers and directors to establish a fully functional transformation division to track and monitor all transformation initiatives and enablers.

Commissioner for Co-operatives David Obonyo stressed the importance of adhering to Chapter Six of the Constitution on integrity.

“In the past, we have had institutions struggling with liquidity and governance issues due to managers and directors not adhering to prudential guidelines.

This has resulted in institutions losing money and some closing down their businesses. The government’s new stance is that any leader or chief executive implicated in funds embezzlement will face the full force of the law,” Obonyo said.