spirit and pride (Reynolds 1998)
.
governments expect cooperatives to inform policy making and engage in advocacy while
role in
the cooperatives
themselves
seek a more pronounced,
active and permanent
decision-making
(Mercoiret 1999)
. The shared spirit of cooperation
and empowerment
leads to engagement in larger projects for the economic gain of the society
7


national strategies developed by government backed governance and institutional reforms
implemented since
have been
in
2003
. The number of registered co-operative societies
Kenya has grown steadily, increasing from 9,443
in 2000
, to 11,968 at the end of 2008
(Wanyama, 2009). These Co-operatives are essentially business organizations, observing
and
and
universally accepted principles
values which underscore both the social
economic dimensions of their nature (Akide, 2005).
2J Potential of Cooperative Societies in Kenya
2003-
Kenya’s successive development
plans; the Economic Recovery Strategy
(ERS,
Strategy Paper (2001),
2007)
, National Poverty Reduction Plan, the Poverty Reduction
Strategy for Revitalization of Agriculture
(SRA) and now the Kenya Vision 2030
; all
co-operative
the
recognize
movement
as an important
player in national development,
and
wealth
with particular focus on mobilization of savings, investment
of resources,
enhance
the
employment
creation
(MOCDM strategic plan 2008-2012)
. Co-operatives
important
optimal performance of key sectors by providing an
framework for
This has therefore shown the
need to
mobilization of both human and
financial capital.
vibrant
strengthen
reform and
the co-operative sector and
transform
co-operatives
into
social and business institutions (MOCDM strategic plan 2008-2012).
Co-operatives have made great contributions towards economic growth and employment
creation in Kenya. They have enormous capacity to undertake cost effective procurement,
(MOCDM
distribution and acquisition of
new technologies, products and services
strategic plan 2008-2012). To date, there are over 11,200 registered cooperative societies
strategic
have
country-wide
(MOCDM
cooperatives
plan 2008-2012)
. The
employed
Indeed, a
over 300,000people besides providing opportunities
for self-employment.
significant number of Kenyans, approximately 63% draw their livelihood either directly
or indirectly
from cooperative-based enterprises (Republic of Kenya 2007;
International
Monetary Fund 2007; The Kenya High Commission in the United Kingdom 2007).
Through mobilization of savings and provision of loans, cooperatives have brought their
members
into the mainstream
national economic
grid. Besides, they are
playing a vital
role in financing education, medical services, household and investment needs. However,
9


population provide
supportive public. In addition economicobjectives of the
an
of
opportunity
opportunity
to achieve political goals (.). These
natures
the existence
political will to initiate and implement policy and it is critical for making the decisions to
political environment
commit resources. By
contrast, the absence of an enabling
public
the
constrains reform. For instance
relapse to corruption may undermine
confidence in government’s reform initiatives. And if the public withdraws its support for


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