By Dorothy Musyoka
Cabinet Secretary for Micro, Small and Medium Enterprises Dr.Wycliffe Oparanya, say the Cooperative Bill will address governance challenges encountered in the cooperative sector.
The Bill also aims to provide clarity on the roles and responsibilities of members, boards of directors, and management, thereby fostering transparency and accountability.
The Cooperative Societies Bill No. 7 of 2024 is set to bring transformative changes to Kenya’s cooperative sector, addressing long-standing governance issues and reducing conflicts of interest among various organs within cooperative institutions.
One of the key provisions of the Cooperative Societies Bill No. 7 of 2024 is the explicit definition of the roles and responsibilities of cooperative members, boards of directors, and management.
“It will explicitly define the roles and responsibilities of members, boards of directors and management. It will define tenure and eligibility of those serving in various positions,” stated the CS.
Additionally, the Bill is expected to eliminate ambiguity and reduce instances of conflict, where overlapping duties have previously led to inefficiencies and mismanagement.
Another important aspect of the bill is the stipulation of tenure and eligibility for individuals serving in various positions within a cooperative.
It ensures that the cooperative leadership remains dynamic and accountable to its members, ultimately enhancing the cooperative’s growth and resilience.
“The cooperative societies bill no 7 of 2024 will address long-standing Governance problems in the Cooperatives sector, and reduce conflicts of interest between various organs of a cooperative institution,” stated Oparanya.
This provision will help prevent the monopolization of leadership roles and encourage fresh ideas and perspectives.
The introduction of this bill is a significant step toward reforming Kenya’s cooperative sector.
By providing a framework that promotes good governance, transparency, and accountability, the bill will likely lead to a more robust and sustainable cooperative movement in Kenya.
Improved governance structures will empower cooperatives to better serve their members, strengthen their financial performance, and contribute more effectively to the national economy.
With the bill set to be tabled for debate, stakeholders in the cooperative sector, including members, directors, and management teams, are encouraged to familiarize themselves with its provisions and engage in constructive dialogue to ensure its successful implementation.