Government to Prioritize Good Corporate Governance in Cooperative Movement

Nanyuki: Cabinet Secretary in the Ministry of Cooperatives and Micro and Small and Medium Enterprises, Wycliffe Oparanya, has announced that the government is prioritizing the improvement of corporate governance within the cooperative movement to stim...

Nanyuki: Cabinet Secretary in the Ministry of Cooperatives and Micro and Small and Medium Enterprises, Wycliffe Oparanya, has announced that the government is prioritizing the improvement of corporate governance within the cooperative movement to stimulate growth in the sector. The CS emphasized that enhancing governance standards would also bolster integrity in this crucial economic pillar.

According to Kenya News Agency, Oparanya made these remarks at the conclusion of a two-day retreat held in a Nanyuki town hotel, focusing on ministerial performance review. He directed that both the state departments of Cooperatives and Medium, Small and Micro Enterprises (MSMEs) should complete their charters and strategic plans by the end of the financial year. ‘We also need to carry out an impact assessment in both cooperatives and MSMEs, which should be an ongoing process. That’s why we require new regulations, policies, and legal frameworks as instruments to help achieve our goals,’ he stated.

Moreover, Oparanya announced that the government is reviewing the Saccos Act of 2008 to reinforce good governance within the cooperative movement. ‘We have already engaged a team of experts to work on it, and it has passed the National Assembly and is now in the Senate,’ Oparanya added. This initiative follows a recent incident where Sacco savings worth Sh. 1.8 billion were lost to the Kenya Union of Savings and Credit Cooperatives (KUSCCO) earlier this year.

The CS also revealed the repeal of the coffee bill, identifying it as a key component of the country’s economic recovery strategy. ‘We have selected coffee because it’s gold; this year the crop is enjoying very good prices. That’s why coffee reforms are critical. I am happy the Kenya Coffee Planters Union (KPCU) has picked it up, and with the new coffee bill in place, we expect positive changes,’ he added. The nation aims to reclaim its position as Africa’s leading coffee-exporting country, having slipped to fifth place in recent decades.

Deputy Chief of Staff in the Executive Office of the President for Performance and Delivery Management, Eliud Owalo, highlighted the significance of midterm reviews in implementing five-year strategic plans. ‘These reviews are essential for helping ministries refine priorities, recalibrate strategies, and ensure high-impact delivery over the remaining two and a half years of the current planning cycle,’ Owalo said. He further emphasized the need to institutionalize performance contracting at all levels to foster a culture of accountability and continuous improvement.

Owalo also mentioned the development of a robust reward management framework that directly links recognition and incentives to performance outcomes. The retreat was attended by key figures including Principal Secretary for MSMEs Susan Mangeni, Principal Secretary for Cooperatives Patrick Kilemi, and other senior officials.

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