The government has announced new sweeping directives targeting cooperatives across the country to streamline decision-making and improve governance.
In a notice dated June 18, 2025, the Ministry of Cooperatives, through the Commissioner for Cooperative Development, acknowledged the vital role cooperatives play in Kenya’s socio-economic development, noting that many have experienced significant membership growth in recent years — a testament to the public’s confidence in the cooperative business model.
However, the ministry highlighted that this rapid expansion has brought its challenges, including the ballooning membership numbers that have made it increasingly difficult for cooperatives to conduct effective general meetings.
In response, the government has directed all cooperatives with more than 5,000 members to immediately adopt a delegate system of representation in their general meetings.
Under this new system, each cooperative will appoint a minimum of 150 and a maximum of 500 delegates to represent the wider membership during these crucial gatherings.
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New rules affecting Cooperatives
Additionally, all affected cooperatives are required to update their bylaws to formally anchor the delegate system and ensure it is legally recognized within their internal governance structures.
This move is designed to bring greater efficiency and ensure that decisions are made in a timely and inclusive manner, even as membership numbers continue to grow.
Beyond restructuring meetings, cooperatives have also been tasked with devising effective mechanisms to keep the general membership informed about the affairs of their societies.
The directive takes effect immediately, and cooperatives have been given a six-month window to fully implement the changes, including amending their bylaws and putting communication structures in place.
Cooperatives CS Wycliffe Oparanya had in June directed all cooperative societies with membership exceeding 10,000 to amend their by-laws within the next nine months to adopt a delegate system of representation.
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Under this system, he added, no more than 500 delegates shall be selected to represent the broader membership at general meetings but emphasised that the representation must be fair and inclusive, taking into account geographical distribution, gender balance, age diversity, and the inclusion of persons with disabilities.
“In practice, in societies with more than 10,000 members, especially those with broad geographic coverage, it is neither practical nor efficient to hold general meetings with every member physically present. This has often led to disorganised meetings and poor decision-making processes,” he noted.
CS Oparanya on new measures
The CS said the two critical directives given were aimed at ensuring compliance and enhancing institutional efficiency among cooperative societies and were part of ongoing efforts to strengthen governance, transparency, and accountability within the cooperative sector.
Oparanya acknowledged that the cooperative movement faces significant threats arising from financial mismanagement, weak governance frameworks, and a growing erosion of public trust, which are visible in the form of shuttered SACCOs, disillusioned members, and communities increasingly questioning the relevance and reliability of cooperative institutions.
Through enhanced sectoral integrity, the CS said the government has initiated targeted governance reforms to restore public confidence, improve operational efficiency, and reinforce ethical leadership within the cooperative sector.
“We are proactively driving sector-wide reforms through the proposed Cooperatives Bill, 2024, currently before the Senate. This enhances ethical leadership by enforcing transparency, accountability, and anti-corruption measures,” the CS added.
“It strengthens good governance with robust oversight and safeguards institutional integrity through strict penalties and self-regulation frameworks; all designed to restore trust and ensure the sustainability of Kenya’s cooperatives sector.”
He further explained that the Cooperative Societies Bill, 2024, also introduces provisions that require cooperative leaders to meet higher educational and competency standards, saying this would ensure that cooperatives are guided by individuals with the right expertise to make informed, strategic decisions for long-term success.
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