State fast-tracking Cooperatives Bill to modernise sector
Business
By
DPCS
| Jul 04, 2026
The government is fast-tracking a new Cooperatives Bill meant to modernise the sector and benefit the millions of Kenyans who belong to cooperative societies, Deputy President Kithure Kindiki said on Saturday.
President William Ruto is expected to sign the bill into law within a month, a step that would overhaul the sector to make it more transparent, efficient and technologically capable.
"Within a month, the bill will be signed into law by the president so that we can modernise this sector, improve transparency and governance, and make it digitally conversant," the DP said.
Speaking at the 104th Ushirika Day celebrations at Uhuru Park in Nairobi, Kindiki said the Kenya Kwanza administration has placed cooperatives at the center of its development agenda, driving the push for faster reforms. The creation of a standalone Ministry of Cooperatives and MSMEs, he said, reflects how seriously the administration treats the sector.
"The Cooperatives Bill currently before Parliament, alongside ongoing SACCO reforms, will reinforce public confidence by promoting sound governance and protecting the savings of the more than eight million Kenyans who have entrusted SACCOs with deposits exceeding 1 trillion shillings.”
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He added that a modern legal and regulatory framework is essential to help cooperatives grow, compete and deliver more value to members, especially at the grassroots level.
"Our goal is to build cooperative institutions that are transparent, financially sound, professionally managed and resilient enough to drive inclusive economic growth and support the Bottom-Up Economic Transformation Agenda," he said.
Cooperatives have helped farmers improve production and access better markets, enabled workers to save and secure affordable credit, and allowed families to educate children, build homes and start businesses, said KIndiki.
He also called for greater inclusion of youth and women in cooperatives and their leadership. "We must encourage the youth to keep this tradition of joining the cooperative movement so they can succeed in business and other ventures," he said.
As the government accelerates its flagship projects, Kindiki said cooperatives are well-positioned to boost agricultural productivity, strengthen small and medium enterprises, expand affordable housing, support universal health coverage and advance the digital economy. "They also remain one of the most practical pathways for addressing youth unemployment by enabling young people to organise, mobilise capital, and build enterprises, becoming job creators rather than job seekers," he said.
The DP further lauded the Ministry of Cooperatives for its work streamlining the sector and pledged to push for higher budget allocations to double cooperative membership from the current 14 million.