independence education training and information cooperation among Cooperatives

Independence education training and information

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independence, education, training and information, cooperation among Cooperatives and concern for Community (Gunga, 2009). The benefits which can accrue from adherence to the (ICA) principles include; enabling entrepreneurs achieve economies of scale, bargaining power and capacity to invest in more advanced stages of the value chain including storage, processing, marketing and distribution of products and services (Gunga, 2009). Through cooperatives, transaction costs are reduced and relationships with commercial enterprises are built. In addition, as community institutions, cooperatives devolve decision making to the community level, build social capital, nurture community spirit and pride (Reynolds 1998). Today many governments expect cooperatives to inform policy making and engage in advocacy while the cooperatives themselves seek a more 7
pronounced, active and permanent role in decision-making (Mercoiret 1999). The shared spirit of cooperation and empowerment leads to engagement in larger projects for the economic gain of the society The evolution of co-operatives worldwide is traced from time immemorial, beginning from the day individuals first joined hands for the advancement of common aspirations (Republic of Kenya 2007; International Monetary Fund 2007; The Kenya High Commission in the United Kingdom 2007). In Kenya, the co-operative movement in its modem state started in 1908. However, without a specific co-operative legislation at the time, the first society was registered under the business practices ordinance as legislated in the U.K, adopted in India and practiced in Kenya. It was not until 1931 that the first societies’ ordinance was enacted. Immediately after independence in 1963, the government of Kenya embarked on a deliberate policy of Africanizing the economy whose major policy statement was contained in the Sessional Paper No. 10 of 1965. This policy document identified co-operatives as having the suitable institutional framework through which the indigenous Kenyans could participate in economic management and development upon attainment of self-rule. This saw a rapid growth and expansion of cooperatives in Kenya 2.2.1 Evolution of SACCOS in Kenya The first SACCOs were registered in Kenya in 1964 after the country became independent in 1963. In the following years, several SACCOs based upon common bonds linked to residence, occupation and churches were formed. However, in 1969 the government required that SACCOs be strictly based on a secure crop or employment relationship. A check off system was introduced to help SACCOs receive payments directly from employers, processors (cooperatives, parastatals or private companies) and marketing organizations. This system ensured that a 8
member’s income would have automatic deductions to repay loans and was a significant factor in the development of SACCOs.

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