Kenyan co-operatives plan to recruit from across region

What you need to know:

The EAC Co-operative Societies Act, which is now awaiting assent by the regional Heads of State to become law, targets to offer co-operative societies a chance to exploit opportunities created under the common market where goods, services and other factors of production are moved freely.

Kenyan co-operative societies have inched closer to winning their bid to recruit members beyond national boundaries after the regional Parliament passed a Bill that seeks to allow seamless cross-border operations.

The EAC Co-operative Societies Act is now awaiting assent by the regional Heads of State to become law after the East African Legislative Assembly (Eala) gave it a final nod on Wednesday.

“The Act, once enacted, will allow primary co-operatives from the different EAC partner states to form a regional co-operative union, individuals from different countries to form one co-operative, among other benefits,” Mainza Mugoya, a programme officer with the East Africa Farmers Federation (EAFF), said on Thursday.

The Act targets to offer co-operative societies a chance to exploit opportunities created under the common market where goods, services and other factors of production are moved freely.

The East African economies have been mainly agro-based, with co-operatives playing a big role in the production and marketing of agricultural produce such as maize and coffee.

Co-operative societies have also emerged as a key driver of growth by offering alternative financing for members who cannot access bank loans to drive key ventures such as farming.

“We want co-operatives to enjoy the economies of scale presented by the common market arrangement because they are active in prime sectors such as agricultural production. We feel the new law will allow for cross-border operations without undue restrictions,” Japheth Magomere, the vice- chairman of the Co-operative Alliance of Kenya told the Business Daily.

Summit agenda

The EAC bloc has a population of 141.1 million people, with an estimated GDP of $100 billion (Sh8.8 trillion).

“The role of co-operatives in agriculture is huge in all the member countries and we envisage a scenario where Kenyan farmers can freely sell surplus food to Tanzania and those across the border do the same in our country without much challenges,” Mr Magomere said.

EAFF said it will push to have the Act signed by EAC Heads of State at a summit scheduled for next month.

“EAFF’s intention is that the Act will be part of the agenda for the forth-coming EAC Heads of State Summit taking place in Nairobi in the next two weeks.

“We intend to work closely with the office of the secretary-general of the EAC to ensure that this is the case,” Mr Mugoya said.