State aims to roll out new Co-operatives Act on Ushirika Day
By Reuben.Mwambingu, May 31, 2024
The government intends to inaugurate a new Co-operatives Act during this year’s Ushirika Day celebrations, Cabinet Secretary Simon Chelugui (pictured), said yesterday.
Chelugui who is in charge of Cooperatives and Micro and Small Enterprise said development of Cooperatives Bill No. 7 of 2024 marks a significant milestone in its legislative efforts. This Bill, he said, has overcome the last hurdle following an amicable agreement between the Ministry and the Council of Governors on contentious and emerging issues.
“We expect a new Cooperatives Act that will be launched by His Excellency the President in July during this year’s Ushirika Day celebrations,” he said during the Annual National Co-operatives CEOs workshop in Mombasa. Chelugui said the new legislation provides a comprehensive framework for the regulation of cooperatives by both levels of government, while also promoting self-regulation within the co-operative structure and enhancing governance tools.
“This Bill is expected to elevate the co-operative sector to new heights of good governance, increased efficiency, and effectiveness in service delivery, leading to high performance across the board,” he added.
In addition to the legislative agenda, the CS said the government is implementing institutional reforms targeting various co-operative production value chains, including coffee, dairy, and cotton.
Licensing roles
Against the above backdrop, Chelugui noted that coffee reforms have been largely successful, achieving key milestones such as the Direct Settlement System (DSS), which ensures farmers receive payment within five days of sale, and the separation of licensing roles to prevent monopolies.
“The reforms have restricted participant roles at the Nairobi Coffee Exchange (NCE) to reduce collusion and licensed 15 co-operative unions to participate in the NCE trading floor,” he said while acknowledging the efforts of the CEOs as central in driving the co-operative movement forward and contributing to the country’s socio-economic development. He regretted challenges entangling co-operatives and other small and medium-sized enterprises (SMES).