Cooperatives Hold A Key Role In The Growth Of Our Economy, Mudavadi Says

Prime Cabinet Secretary Musalia Mudavadi has urged Kenyans to embrace the culture of saving through cooperatives to safe-guard their financial security and for the country to strive economically.

Mudavadi said the habit of income consumption rather than saving has retrogressive effects within the society and the country’s GDP.

He said cooperative societies hold big potential to enhance the livelihoods of people across various sectors, including agriculture, education, housing, the environment, and small and medium-sized enterprises, by effectively mobilizing resources.

“As we speak, the membership of cooperative societies in Kenya is over 15 million people. These numbers contribute to a mobilization of up to a tune of Ksh 1.2 trillion representing a significant percentage of the national savings,” said Mudavadi.

Mudavadi was speaking in Chiakariga, Tharaka Nithi County during the Boda Boda Members Economic Empowerment programme under the patronage of Tharaka Member of Parliament George Murugara.

He said the ongoing empowerment programmes across the country aim to empower Kenyans to be able to tap into emerging financial opportunities and grow their wealth.

The programme is targeting women, youth, businessmen and women through small and medium enterprises, farmers and people living with disability among other societal groups.

“Let us look at the bigger picture of encouraging savings savings in the country because we want our youth, women and every other person engaging in business to be empowered and progress through savings. When we support these groups of individuals through this programme we know the monies are going for a good course to build the cooperatives.”

In Kenya the cooperative societies are diverse, ranging from savings and credit (SACCOs) to housing, agriculture and farmers cooperatives, and consumer cooperatives, marketing cooperatives and investment cooperatives among other emerging ones.

“I was very happy to have received this invitation to join other leaders and support Tharaka Boda Boda Sacco.

We are here because of empowerment and nothing else. When we see Boda Boda operators coming together and encouraging the culture of saving we know we are making a step forward.

This will help them expand their businesses to the next level and the government has to support them,” Mudavadi said.

“The progress at which Kenyans are making in saving as part of their incomes for the future as a comparison to other nationalities is encouraging and the government has noted that there has been a great improvement in the Kenyan savings culture.”

He has in the recent past noted that for governments and institutions seeking to access concessional funding, cooperatives must be recognized as vital partners due to their remarkable capacity to generate resources.

He has also been quoted to have re-affirmed that the government has sponsored the Cooperatives Bill No. 7 of 2024, before Parliament, a legislation that is expected to strengthen governance and enhance efficiency in the management and operations of cooperatives in Kenya.

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