Nairobi: The Kenya Cooperative movement, though leading in Africa and being among the top five in the world in terms of membership and deposits, is yet to deepen its presence in other sectors of the economy.
According to Kenya News Agency, CIC Insurance Group Chairman Nelson Kuria has highlighted the cooperative societies' significant strides, particularly in financial deepening and serving customers outside the mainstream financial ecosystem.
"Our cooperative movement is thriving well on the continent and globally. Recently controlling more than Sh1 trillion worth of assets and very healthy loan books in addition to controlling more than 30 percent of the national savings," said Kuria. He was addressing cooperative leaders at a Cooperative Alliance of Kenya (CAK) forum focused on Ethical Leadership and Governance for Savings and Credit Cooperatives (SACCOs). Kuria noted the movement's success in human capital development and rural wealth creation.
Kuria emphasized the need for cooperative societies in Kenya to diversify their investments to enhance resilience against global market competition. He pointed out that while SACCOs outperform some commercial banks in deposits and membership, they have yet to fully exploit sectors such as hospitality, health, education, mining, wholesale and retail, and industrial economic zones.
Kuria suggested that business integration and innovation are strategies that could help cooperatives harness untapped potential. He acknowledged past failures in business integration due to corruption, leadership issues, and lack of innovation, but insisted that with sound management and visionary leadership, integration could lead to substantial business growth.
Cooperative Alliance of Kenya (CAK) Chairman McCloud Malonza confirmed efforts to enhance leaders' capacity to navigate the current business environment. He acknowledged the movement's growth amidst challenges and competition from large corporations, emphasizing governance and leadership values as critical areas for improvement.
Malonza mentioned the cooperative bill at the Senate level, which aims to address governance and management challenges within the movement. He reiterated the mission to strengthen cooperative institutions in alignment with changing global business dynamics.
Thomas Gachie, CEO of CoopTech, urged the incorporation of technology into cooperative services. He highlighted CoopTech's role in enabling members to access services from their homes, reducing the need for physical visits to cooperative branches. Gachie underscored the potential for reduced technology costs and enhanced risk management through a shared platform, ultimately benefiting members through lower transaction fees and improved convenience.