The government has called on Cooperatives and Small and Medium Enterprises to take advantage of the Economic Partnership Agreement with the European Union (EU).
This is through identifying and supporting key value chains that will enable them scale regional and global heights.
Speaking during the Kenya National Police DT Sacco annual meeting, Cabinet Secretary for Cooperatives and Micro and Small Enterprises, Simon Chelugui said the cooperative sector is a social development enabler in Kenya which will broaden the tax base.
“We call on Cooperatives to adopt the reforms that range across various value chains like dairy, cotton, mining, fishing, construction and housing that will go a long way in driving a holistic and sustainable growth,” said Chelugui.
He further said the reforms will provide registration of cooperatives federations for each value chain aimed to foster self-regulation and cohesion in the sector.
“The ministry is working on the amendment of Sacco societies act to facilitate operationalization of deposit guarantee funds and establishment of central liquidity and shared services, it will also formulate regulatory policies and implement instructive framework that will empower cooperatives and SMEs,” he added.
The CS finally called on Cooperatives to reevaluate themselves against National Average Performance and seek areas of improvement.
“According to the data drawn from the 359 regulated Co-operatives, total assets grew by 10.25pc from Ksh 890 billion in 2022 to Ksh 981 billion last year, lending loans recorded a growth of 11.56 pc from Ksh 650 billion to Kah 759 billion, non –performing loans reduced by 9.9pc from 10.01pc and this was attributed to enhanced management and prudent lending,“ added the CS.
Sally Namuye
