Cabinet Secretary Simon Chelugui, overseeing Cooperatives and Micro and Small Enterprise, announced plans for the government to unveil a new Co-operatives Act during this year’s Ushirika Day celebrations.
Chelugui emphasized that the development of the Cooperatives Bill No. 7 of 2024 represents a notable achievement in legislative endeavors.
He highlighted that the bill has successfully navigated its final obstacle, with the Ministry and the Council of Governors reaching a consensus 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 Cabinet Secretary mentioned that the government is actively implementing institutional reforms aimed at enhancing various cooperative production value chains, such as coffee, dairy, and cotton.
Chelugui highlighted the progress made in coffee reforms, citing significant achievements like the Direct Settlement System (DSS), which guarantees farmers receive payment within five days of sale. Additionally, efforts have been made to separate licensing roles to prevent monopolies in the sector.
“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).
