Oparanya shares masterplan for growth, transparency of cooperative funds
By Farhiya Hussein |
Oparanya encouraged MPs to support the expansion of cooperatives, stating that they are crucial for the economy.
Cabinet Secretary nominee for Cooperatives and MSMEs Development, Wycliffe Oparanya, has vowed to ensure the safety and growth of cooperative funds if confirmed in his new role.
Addressing concerns about the management of cooperatives in Kenya, Oparanya emphasised the importance of transparency and accountability in the sector.
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The former Kakamega governor shared his plans for the cooperative docket while appearing before the National Assembly Committee on Appointments on Sunday.
"Cooperatives are one of the oldest institutions in our country, dating back to 1908," Oparanya stated.
He added, "Our ministry's role is to oversee these cooperatives, ensuring they operate transparently and are accountable to their members. We provide support in accessing funds, auditing services, and overall management to ensure their mandates are met."
Oparanya further acknowledged the challenges faced by cooperatives, noting that many have collapsed due to poor management.
He stated that currently, out of 30,000 registered cooperatives, only 10,000 are active.
“Despite this, these cooperatives hold an impressive asset base of Sh1.7 billion, nearly half of Kenya's budget. They have successfully lent out Sh1.1 billion to members and saved Sh1 billion, representing 30 per cent of the country's total savings.”
Speaker Moses Wetangula and his deputy Gladys Boss and other members of the National Assembly Committee on Appointments vet Cooperatives CS nominee Wycliffe Oparanya on Sunday, August 4, 2024. (Photo: Parliament)
Oparanya encouraged MPs to support the expansion of cooperatives, stating that they are crucial for the economy.
He stated that, if given the opportunity to lead the ministry, he would actively involve MPs in efforts to register more people in cooperatives, as they form the foundation for small and microenterprises.
By providing access to funds, cooperatives play a key role in strengthening the overall business sector.
Oparanya also highlighted the ministry's initiative to form a central liquidity facility for cooperatives. This facility, he said, will enable cooperatives to pool their resources and access funds more efficiently.
"The Cooperative Bank, currently operating as a commercial bank, is 65 per cent owned by the cooperative movement. However, it operates under the Banking Act and is not treated as a cooperative," he noted.
Oparanya assured the committee of the widespread presence of cooperatives, including in rural areas and among small-scale traders. "Cooperatives are everywhere, even among 'mama mbogas' and in table banking. If given the chance, I will work tirelessly to support cooperatives in all constituencies, including West Pokot South."
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