Deputy President Kithure Kindiki has announced that Kenya's cooperative sector is on the verge of its biggest legal overhaul in years, with a new law expected to be enacted within weeks to tighten governance, strengthen accountability and accelerate the sector's transition into the digital era.
The government has stepped up efforts to reform the cooperative movement, with Kindiki revealing that President William Ruto is expected to assent to the Cooperatives Bill within a month.
Addressing delegates during the 104th Ushirika Day celebrations at Uhuru Park in Nairobi on Saturday, the Deputy President said the proposed legislation will introduce far-reaching changes aimed at improving the management and operations of cooperative societies across the country.
He said the reforms are part of the Kenya Kwanza administration's broader strategy to unlock the full potential of cooperatives, which remain a critical source of savings, credit and investment for millions of Kenyans.
According to Kindiki, the new law, together with ongoing reforms in the SACCO sector, will strengthen oversight mechanisms and help safeguard deposits held by cooperative institutions.
He noted that the government has placed significant focus on the sector, citing the establishment of a dedicated Ministry of Cooperatives and MSMEs as a demonstration of that commitment.
The Deputy President said stronger regulatory structures are necessary to ensure cooperatives remain stable, competitive and capable of meeting the evolving needs of their members.
He observed that cooperative societies have played a major role in transforming livelihoods by enabling farmers to secure better returns, helping workers access affordable financing and supporting household investments.
Kindiki also challenged cooperative leaders to create more opportunities for young people and women, saying their participation will be crucial in sustaining the movement's growth.
He added that cooperatives are expected to contribute significantly to the government's development priorities, including agriculture, affordable housing, healthcare, small business development and digital innovation.
The Deputy President further described the sector as a practical vehicle for job creation, particularly among the youth, through collective savings, entrepreneurship and enterprise development.
He commended SACCO members for fostering a culture of saving and investment and pledged continued government support, including increased funding and efforts to expand membership beyond the current 14 million Kenyans.