The Government has warned unscrupulous people using the cooperative name to swindle innocent Kenyans their hard-earned money.
Principal Secretary state department for co-operatives, Ali Noor Ismail said some corrupt businessmen have in the recent past registered community based organisations and cooperatives and thus use them as avenues to swindle Kenyans their cash.
“We have experienced situations in the past where immoral businesses operated illegal institutions in the name of credit taking and thus trick depositors to save their money with them. This has led to the majority of Kenyans losing their savings especially when the institutions collapse as the authorities cannot trace their background,” said Mr. Ismail.
The challenge he noted has developed owing to lack of professional cooperators and strong regulation.
He confirmed that inquiries instituted by the State Department of co-operatives have in many instances detected unprofessional behavior by leaders and the management of co-operatives leading to losses to member’s investments.
He added, “To worsen the situation unscrupulous persons have used the cooperative name to swindle innocent Kenyans out their hard-earned money. I am aware there are many co-operatives that are doing a good job, which is commendable, but there are a few others that are soiling the name of the sector and giving the movement a bad name.”
To correct the situation, Ismail confirmed the cooperative department has facilitated the formation of the Kenya Society of Professional Cooperators Kenya (KSPC) to promote cooperative management as a profession by encouraging, registering, developing and regulating co-operative professionals. “We are sure the society will help us in taming the numerous setbacks facing the cooperative movement in the country,” he added.
The Commissioner for cooperatives Geoffrey Njang’ombe explained that the enforcement of professional and ethical standards in the sector is well highlighted in the National Co-operative Policy (NDC). Njang’ombe added adhering to the morals is aimed at enhancing the profile of the Kenya cooperative movement which is rated position one in Africa and Seventh in the world.
“The KSPC is therefore an industry led solution to promote professionalism in the sector. As a professional organization like others, KSPC is expected to promote cooperative management as a profession by registering and requiring members to work within certain professional and ethical standards. In addition, KSPC will continuously capacity build all its members on emerging issues that are likely to affect them professionally. The organization will also act as the reservoir of knowledge generated through networks within and beyond our borders,” said Mr. Njang’ombe.
KSPC council chairperson Professor Gicheru observed that the NDC had observed that infiltration by persons without background knowledge on co-operative philosophy has led into distorting of the co-operative identity and has contributed to reported cases of unprofessional behavior.
“The main reason for registration of the professional body was therefore to promote co-operative management as a profession by registering, developing and regulating cooperative professionals. So far the society has registered 150 members and is being managed by a nine member council and two staff,” said Prof Gicheru.
To ensure professionalism is fully attained in the movement, Gicheru confirmed that her organisation has partnered with KASNEB to support in the administration of certified cooperative professional (CCOP) examinations.
“This will give KSPC time to develop the required internal capacity. As we speak, we have applied to Kenya National Qualifications Authority to register our three qualifications, -CCOP level 1, CCOP level 2 and CCOP level 3. We will commence recruitment of students to sit for CCOP exams once we receive the certificates for the registration of the qualifications,” she added.
The society is in the process of accrediting training institutions to train on the outlined qualifications. Co-operative University of Kenya has already applied for evaluation and the Council will soon sit as council to consider their application.