Naivasha: Cooperative and MSME Development Cabinet Secretary Wycliffe Oparanya has directed all cooperative societies, unions, national cooperative organisations, and apex cooperatives to file their annual returns by the end of this month. He warned that failure to comply will attract deregistration from the cooperative register.
According to Kenya News Agency, Oparanya, who spoke during an Ethical, Leadership and Governance forum for Cooperative leaders organised by the Cooperative Alliance of Kenya (CAK) in Naivasha, noted that as stipulated under the Cooperative Societies Act, all cooperatives were required to file their annual returns in the prescribed manner and within the specified time frame of the end of April 30 each year. Oparanya expressed concern over a growing number of societies failing to meet this legal obligation, thereby exposing themselves to the risk of deregistration. He emphasized that any cooperative society that has failed to file its returns for the last three years and within the stipulated timelines will be struck off from the Cooperative Register and will cease to exist as a corporate entity.
The CS noted that the returns must include a duly approved copy of the audited financial statements for the year in question, as well as updated details of all elected officials and the Chief Executive Officer, specifically their full names, physical addresses, telephone numbers, and email addresses. Additionally, Oparanya directed that all cooperative societies with membership exceeding 10,000 amend their by-laws within the next nine months to adopt a delegate system of representation. Under this system, no more than 500 delegates shall be selected to represent the broader membership at general meetings, ensuring fair and inclusive representation.
Oparanya stated that these directives aim to ensure compliance and enhance institutional efficiency among cooperative societies, forming part of ongoing efforts to strengthen governance, transparency, and accountability within the cooperative sector. He acknowledged significant threats facing the cooperative movement, such as financial mismanagement and weak governance frameworks, which have resulted in shuttered SACCOs and disillusioned members. The CS noted that the Government, through his ministry, has initiated targeted governance reforms to restore public confidence and improve operational efficiency.
The Cooperative Societies Bill, 2024, currently before the Senate, introduces provisions requiring cooperative leaders to meet higher educational and competency standards, ensuring informed strategic decisions for long-term success. The CS urged cooperative leaders to embrace internationally recognised practices such as member-led oversight and mandatory independent audits to manage modern cooperative leadership challenges effectively.
CAK Chairman McCloud Malonza highlighted the importance of governance stability, noting that cooperatives contribute significantly to the country’s GDP. He confirmed that the movement, together with the government, is fast-tracking capacity building of leaders to equip them with necessary skills to address current business challenges. CIC Insurance Group Chairman Nelson Kuria emphasized the critical timing of the summit of cooperative leaders, coinciding with the United Nations International Year of Cooperatives in 2025, and urged leaders to focus on sustainability and excellence amid increasing competition.
Kenya, with over 31,000 cooperatives, mainly SACCOs, plays a key role in financial inclusion and the Government’s BETA Plan, empowering grassroots communities and promoting equitable livelihoods nationwide.