The Council of Governors (CoG), through the Agriculture and Cooperative Committee chaired by Bungoma governor Kenneth Lusaka has proposed a robust legal framework to govern the operations and management of cooperatives in the country.
The Council, in a meeting with the Government led by the Cabinet Secretary, Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development Simon Chelugui, expressed critical concerns regarding the draft Cooperative Bill 2023.
The Governors emphasised the need of establishing a robust legal framework in the management of cooperatives in the Country, a devolved function of County Governments as enshrined in the Constitution.
At the same time, COG sought clarity on the roles and linkages between the National and County Governments on the issues of Cooperative registration certificates, issuance of demand and agency notices, inspection of cooperative societies and inquiry into the affairs of the primary and secondary cooperatives among others.
“It is crucial to acknowledge and confront the persistent challenges facing the cooperative sector,” noted Governor Lusaka.
Lusaka added that the absence of automated systems for registration and management of cooperatives, is detrimental to the growth and success of cooperatives in the country.
Furthermore, the Council stated the urgency in resolving the lingering stalemate, to foster a more conducive environment for the growth and success of cooperatives in the nation.
The meeting was held on Wednesday, February 7, 2024 at Argyle Grand hotel, Nairobi County.
COG has, therefore, proposed that the Ministry of Cooperatives should recall the Bill submitted to Parliament to allow incorporation of concerns raised by the Governors besides aligning the draft regulations of the Cooperative Bill with the outcome of the unbundling exercise and amendments in the Bill.
In attendance was CS Chelugui, Governors Lusaka, Mutahi Kahiga(Nyeri), Dr Paul Otuoma ( Busia) and COG CEO Mary Mwiti among others.