How cooperatives can reinforce their empowerment role

For decades, cooperatives have been a cornerstone of Kenya’s economic development and social empowerment. They have significantly reduced poverty, created jobs, and mobilised communities to pool resources for the common good and building a sustainable future.

With over 14 million members across sectors like agriculture, financial services, manufacturing, and real estate, cooperatives contribute significantly to Kenya’s GDP.

Globally, the cooperative movement has distinguished itself as a force for good and a sustainable catalyst for poverty eradication and wealth creation.

Its significance led the 2023 United Nations General Assembly to declare 2025 the International Year of Cooperatives with the theme “Cooperatives build a better world,” showcasing the enduring global impact cooperatives have everywhere.

This theme puts a spotlight on how the cooperative model is an essential solution to overcome many global challenges and continues to play an important role in accelerating efforts to implement the Sustainable Development Goals (SDGs) by 2030.

In Kenya, cooperatives have evolved from rural and sector-specific entities into full-fledged savings and investment schemes open to all citizens.

They empower members to save and invest for diverse needs, such as education, business start ups and expansion, medical insurance, and homeownership.

This growth, however, comes with challenges. Cooperatives face increasingly complex risks, including climate change, cybersecurity threats, and fierce competition from fintechs (financial technology firms), banks, and microfinance institutions.

Economic volatility, unpredictable policies, and changing consumer demands also highlight the urgent need for cooperatives to adapt and reinvent themselves.

Modern risks require proactive strategies. Protecting sensitive personal data is crucial as digital platforms become integral to operations.

Risk management must go beyond traditional asset protection to ensure cooperatives remain resilient and relevant in the evolving economic landscape.

Insurance plays a critical role in safeguarding cooperatives against disruptions and external shocks, ensuring continuity and sustainability. By aligning with the Kenya Cooperative Development Policy’s emphasis on resilience, cooperatives can better navigate uncertainties. Tailored insurance solutions, such as agricultural covers, credit life insurance, and microinsurance, protect members and their investments.

To embed a risk management culture, cooperative leaders must integrate it into their governance frameworks. This requires aligning strategies with broader development goals, championing accountability, and making informed, sustainable decisions. By prioritising risk management, cooperatives can secure their future and continue driving Kenya’s economic and social progress.

Through strategic partnerships, effective risk management, and insurance, cooperatives can reinforce their role as catalysts for development, empowering communities and fostering resilience.

The writer is the Group Managing Director and CEO of CIC Insurance Group Plc.