Resilience
Kenya cooperative movement is leading in Africa both in terms of deposit, asset and membership enjoying position one in the Continent and 7th in the world. There is therefore a need for transformational leaders who are ready to maintain the same as well as progress by exploiting various openings like the latest technology, product development and also enhancing capital build up.
Cabinet Secretary for Cooperative and Micro, Small and Medium Enterprises (MSMEs) Development Simon Chelugui said that this would ensure that the cooperatives are well-prepared to face future disruptions, maintain member trust and continue contributing to the socio-economic development of their communities.
The CS who was speaking during an annual workshop organised by Cooperative Bank of Kenya in Kiambu Town.
“Focusing on resilience will empower CEOs with the skills and strategies necessary to not only withstand adversity but to transform challenges into opportunities for growth and innovation,” he said adding that through resilient leadership, cooperatives can become beacons of stability and progress in an ever-changing world.
He said the Government is unwavering in its commitment to providing an enabling legal and policy framework for cooperatives to thrive and thus the development of the Cooperatives Bill No. 7 of 2024 that is at its second reading in Parliament marks a significant milestone in the legislative efforts.
This bill has overcome the last hurdle having been there for the last 15 years and not seeing the light of day, he said, adding that following an amicable agreement between the Ministry and the Council of Governors, contentious and emerging issues have been resolved.
“The new legislation provides a comprehensive framework for the regulation of cooperatives by both levels of government, while also promoting self-regulation within the cooperative structure and enhancing governance tools. The bill is expected to elevate the cooperative sector to new heights of good governance, increased efficiency, and effectiveness in service delivery, leading to high performance across the board,” the CS affirmed.
Chelugui hoped that the new Cooperatives Act would be officially launched by the President William Ruto in July during this year’s Ushirika Day celebrations. In addition to the legislative agenda, the CS said that the government is implementing institutional reforms targeting various cooperative production value chains including coffee, dairy, and cotton.
He explained that the Government is committed to safeguarding the wealth of cooperative members and ensuring that those entrusted with management and leadership roles are held to the highest standards of accountability. “Protecting the interests of our cooperative members remains our top priority, and we are determined to create an environment where their investments are secure and their trust is upheld,” he added.
The CS gave an example of Kenya Union of Savings & Credit Cooperatives (KUSCCO), the umbrella body of savings and credit cooperatives (SACCOs) in Kenya which has been found to have improperly mismanaged the union funds ,
“The government will not hesitate to take firm action against any individuals found to have embezzled the union funds,” he firmly warned. The CS however commended the Cooperative CEOs for the work they were doing saying that their efforts are central in driving the cooperative movement forward and contributing to the socio-economic development of the nation.
“As we move forward, let us embrace the principles of resilience and strong leadership. Let us work together to build a cooperative sector that is robust, dynamic, and capable of withstanding future challenges,” Chelugui said. In the wake of the COVID-19 pandemic and subsequent global economic recession, cooperatives and other businesses have been pushed to their limits, facing unprecedented challenges that have tested their stability and adaptability.
The theme of this year’s workshop is “Leading with Resilience”.
Cooperative Bank Group Managing Director Gideon Muriuki said the technical people who were leading Saccos and other societies should adopt innovative business models in order to register impressive results. “Building a resilience of cooperative societies is not a one day achievement but requires CEOs to lead from the front. The managers should therefore work on transformation policies and at the same time sustain the same,” he added.
Dr. Muriuki noted that Cooperative Bank has maintained a tremendous growth for more than two decades due to regulatory compliance and strict adherence to all prudential guidelines.
“Cooperative societies need to have a strong governance structure, united board of directors and implementing sound strategic plans and I want to call on society managers and directors to establish a fully functional transformation division with a key mandate to track and monitor all the transformation initiative and enablers,” he advised.
Commissioner for Cooperative David Obonyo emphasized on the need for leaders to adhere to Chapter Six of the Constitution on integrity saying that in the past, there have been a few institutions struggling with liquidity and governance issues due to the managers and directors not adhering to prudential guidelines.
“Institutions have lost money and others shut down their businesses, the Government essence is that any leader or CEO accused or implicated on funds embezzlement will be subjected to the full force of the law,” said Obonyo.
During the workshop, the CEOs were taken through topics on promoting leadership and development culture, Ethical leadership and Social Responsibility and also Economic leadership for enterprise development.