At the 2025 International Day of Cooperatives (Ushirika Day) celebrations held at the Kenyatta International Convention Centre (KICC) in Nairobi, Kenya’s Cabinet Secretary for Cooperatives and MSMEs, Wycliffe Oparanya, painted a bold and optimistic vision for the future of the cooperative movement. The event, themed “Cooperatives Driving Inclusive and Sustainable Solutions for a Better World,” brought together key players from the SACCO and cooperative sectors to reflect on past achievements and chart a progressive path forward.
The CS began by highlighting the transformative role cooperatives play in both local and global economies. “We recognise cooperatives not merely as economic institutions, but as instruments of equity, unity, and shared prosperity,” he said, underscoring their unique ability to blend enterprise with community welfare.
Globally, cooperatives have demonstrated remarkable resilience, especially in times of crisis,
thanks to their inclusive and democratic values. In Kenya, the movement is a socio-economic powerhouse. With over 30,000 registered cooperatives, the sector is a key player in agriculture, housing, finance, and the informal economy—making a substantial contribution to Kenya’s development agenda, Vision 2030, by lifting millions out of poverty and creating sustainable livelihoods in both urban and rural areas.
“Through inclusive models, cooperatives continue to give power to the people at the grassroots. They promote ownership, participation, and responsibility,” noted Oparanya.
In alignment with the government’s Bottom-Up Economic Transformation Agenda (BETA), the Ministry has partnered with institutions like the World Bank to roll out a ward-based cooperative model. This approach aims to ensure even the most remote communities are integrated into the national economic landscape.
“Through this model, we are embedding cooperatives in every ward across the country to
enhance grassroots participation and empower local enterprise,” he added.
In a major boost to agriculture, the government has allocated KSh 4.5 billion under the National Agricultural Value Chain Development Project (NAVCDP). The revolving fund is designed to strengthen SACCOs and agricultural value chains by promoting value addition and improving market access for farmers.
Leveraging SACCOs for MSME Support
The CS called on development partners and investors to consider SACCOs as ideal
intermediaries for delivering financial services to micro, small, and medium-sized enterprises
(MSMEs). Unlike banks that often impose restrictive borrowing conditions, SACCOs are deeply embedded in communities and offer more inclusive and accessible financial products.
“SACCOs are best positioned to bridge the credit gap faced by MSMEs. They support
agricultural value chains and offer financial products that are tailor-made to meet the needs of the everyday Kenyan,” he stated.
In a significant policy development, Oparanya revealed that the Ministry is in the final stages of drafting a new Cooperatives Bill aimed at modernizing the sector. The proposed legislation will address long-standing gaps in governance, ethical leadership, and the coordination of roles between national and county governments.
“The new bill will promote transparency, ethical leadership, and competence. It will clearly define institutional roles and create structures that elevate the cooperative movement to meet present and future challenges,” he explained.
Since the last amendment of the SACCO Act in 2008, the sector has undergone profound
changes, necessitating reforms that reflect the current realities.
To strengthen financial security, the Ministry is establishing a Deposit Guarantee Fund to
safeguard members’ savings and a Central Liquidity Fund to promote collaboration, efficiency, and financial resilience among SACCOs. In addition, efforts are underway to develop a shared digital infrastructure to reduce operational costs and promote economies of scale.
“These three initiatives have already received Cabinet approval and are now progressing to
Parliament for adoption before being presented to the President for assent,” the CS confirmed.
Digital Transformation and Inclusive Governance
Digitization remains a central pillar of the government’s cooperative strategy. The Ministry is
driving efforts to ensure that all cooperatives adopt digital tools to boost transparency, efficiency, and accountability. SACCOs are encouraged to invest in technology that improves service delivery and financial reporting.
However, transformation isn’t limited to technology. Oparanya stressed the need for inclusive
leadership within cooperatives. “We are championing strong governance structures and
encouraging cooperatives to bring more youth and women into leadership positions. This will ensure diversity, innovation, and long-term sustainability,” he said.
The cooperative movement in Kenya is at a pivotal moment. With committed government
support, legal reforms, and robust partnerships, SACCOs and cooperatives are well-positioned to scale their impact on livelihoods, enterprise development, and national prosperity.
By embracing innovation, fostering accountability, and staying true to cooperative values, the
movement is poised to transform communities and contribute meaningfully to building a better, more inclusive Kenya.
