Leaders in Kenya’s cooperative movement are considering the establishment of an Economic Advisory Council of Chairpersons to enhance governance, coordination, and policy engagement across the sector.
The proposal emerged during a two-day meeting convened by the Cooperative Alliance of Kenya (CAK), which brought together chairpersons and vice chairpersons from savings and credit cooperatives (Saccos), agricultural, housing, consumer, and other cooperative subsectors.
If established, the Council will serve as the highest advisory organ to CAK and provide strategic guidance on policy, governance standards, and sector-wide reforms.
Speaking after the meeting, CAK Chairperson McCloud Malonza said the initiative is aimed at strengthening advocacy, leadership, and representation within the cooperative sector.
“We are working on strengthening advocacy, governance, and representation across the country’s cooperative movement. Our discussions focused on improving the relationship between boards and management to reduce friction and enhance service delivery to members,” he said.
Malonza noted that a key priority is ensuring cooperatives operate efficiently, with clear separation between governance and management roles, while maintaining accountability to members.
He said the movement is also developing a five-year strategic direction focused on governance reforms, leadership training, and improved coordination across key economic subsectors, including agriculture, dairy, coffee, tea, fisheries, and construction.
“We are setting a five-year strategic direction for the movement aimed at strengthening governance, leadership training, and coordination across sectors,” he added.
Malonza further emphasized the need for clearly defined roles for chairpersons and vice chairpersons, noting that effective leadership culture is critical in shaping ethical and accountable cooperatives.
According to CAK, the proposed Council will operate in a consultative capacity, providing policy direction and ensuring inclusive representation across regions and various cooperatives.
CAK added that the Council will, however, not engage in day-to-day management but will focus on systemic issues affecting the sector.
Once operationalised, the Council is expected to support discussions on key reforms, including the Cooperative Bill and other regulatory frameworks affecting the movement.
Participants at the Forum noted that Kenya’s cooperative sector remains a major economic pillar, managing billions of shillings in assets and serving millions of members.
They said a structured leadership platform is needed to engage government and regulators on policy, taxation, financial regulations, and access to capital.
CAK Chief Executive Officer Daniel Marube said the proposed Council would also provide a unified voice for the sector on issues, including governance standards, digital transformation, and competitiveness.
He said the meeting also served as an induction forum for newly elected leaders, focusing on clarifying the roles of boards, chairpersons, vice chairpersons, and management teams to reduce operational conflicts.
“Effective leadership at the chairperson level is critical to the success of cooperatives. Leaders must be equipped to guide institutions through economic challenges while advancing members’ welfare,” Marube said.
He added that the forum marked the first time chairpersons from different cooperative subsectors have convened under a unified platform to align on governance and policy priorities.
Participants resolved to strengthen unity across financial, agricultural, housing, transport, and teacher cooperatives and to support CAK in advocating for improved legal and regulatory frameworks.
The capacity-building session also addressed governance challenges in a changing economic environment, including technological shifts and evolving regulatory requirements. Leaders were urged to strengthen transparency, accountability, and adherence to established laws and internal controls.
Suluhu DT Sacco Chairperson Charles Virah welcomed the proposal to establish a formal chairpersons’ caucus, saying it would fill a long-standing leadership gap in the sector.
He noted that while CEOs already have structured engagement platforms, chairpersons have lacked a similar forum, limiting coordination at the governance level.
Virah said the proposed council would enhance structured dialogue with government, including the ministry responsible for cooperatives and the commissioner for cooperatives, and help reduce internal conflicts through better coordination between boards and management.
The meeting also reviewed proposed legislative reforms affecting Saccos, including measures aimed at safeguarding members’ deposits, as well as the implications of the upcoming national budget.
As the cooperative sector expands its role in financial inclusion, agriculture, housing, and enterprise development, leaders emphasized the need for stronger coordination and long-term strategic planning. They said the proposed Economic Advisory Council would help position the movement to respond more effectively to emerging economic challenges and opportunities.
by Wangari Ndirangu
