President William Ruto received a shot in the arm after the administration of President Joe Biden announced a Ksh2.9 billion Investment in Kenya’s Cooperative sector to spur the economy.
According to the US embassy, Kenya will get the funds through the United States Agency for International Development (USAID) in the next five years.
Also, Joe Bide’s administration stated that the investment would go towards improving the livelihoods of Kenyan workers.
“Cooperatives are a vital part of the Kenyan economy and society, providing essential services to millions of Kenyans,” USAID Kenya Office of Economic Growth Deputy David Rogers said.
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Additionally, David added that cooperatives are a powerful tool for promoting inclusive economic growth and reducing poverty. That is why USAID is proud to support the cooperative movement in Kenya.”
In a statement, the U.S embassy, underscored its continued support in Kenya to promote inclusive economic growth across the nation.
“The U.S and Kenya continue to improve livelihoods for Kenyan workers in conjunction with USAID the partnership will improve cooperative sector.”
The statement by the embassy outlined that half a million Kenyan households and cooperative members will benefit from the projects.
“The amount will collectively benefit at least 500,000 Kenyan cooperative members and households,” read part of the statement.
Biden Boost Kenya
As part of boosting small scale production among farmers, the project has outlined its move to boost small production in farmers.
The project will see farmers in cattle cooperatives get improved cattle genetics to increase their milk production.
According to the embassy the project is further expected to boost unemployed youth’s livelihoods by advocating for youth worker cooperative.
“Reducing youth unemployment in urban and rural areas by developing and advocating for youth worker cooperative knowledge products”, read part of the statement
Subsequently the project has outlined an interest in improving cooperative members’ health.
“Project will Improve health outcomes for cooperative members by advancing the cooperative ecosystem to build cooperatives’ capacity,” read part of the statement.
Digitalization of SACCOs
According to the embassy, Kenyan SACCOs are expected to hugely benefit from the project. In a bid to develop them, SACCOs will be modernized through climate-smart loans and the development of new digital management technologies to better serve over 9.9 million members in Kenya.
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Likewise, the project will support cooperative apex bodies and their efforts to promote localization and inclusive implementation of a new cooperative policy across Kenya.
These activities will also support more than $45 million in loans to small and medium businesses. The estimated return on investment, which will include leverage and loans, is expected to be approximately 347% over five years.
The Cooperative Development Program (CDP) is USAID’s flagship program to support the cooperative movement in Kenya. The CDP has been working with Kenyan partners for more than a decade.
