SPEECH BY HIS EXCELLENCY HON. MWAI KIBAKI, C.G.H., M.P., PRESIDENT AND COMMANDER-IN-CHIEF OF THE ARMED FORCES OF THE REPUBLIC OF KENYA, CENTENARY CELEBRATIONS OF THE CO-OPERATIVE MOVEMENT IN KENYA, KENYATTA INTERNATIONAL CONFERENCE CENTRE, NAIROBI, 30TH JANUARY, 2009

Fellow Cooperators,

Distinguished Ladies and Gentlemen,

I am pleased to join you all today on this occasion of the centenary celebrations of the co-operative movement in our country.

This occasion provides an ideal opportunity to celebrate our achievements in the co-operative movement over the last 100 years. Indeed, the growth of the co-operative movement and its contribution to our economy has been one of the most remarkable in our region and indeed the continent as a whole.

Beginning with 1,030 registered Co-operative Societies at independence, there are today over 12,000 registered Co-operative Societies. Similarly, the membership of co-operative societies has increased from 200,000 at independence to about 7 million with savings of close to 200 billion shillings. Cumulatively, about 63 percent of our population derives their livelihood directly or indirectly through co-operative based activities.

As we celebrate 100 years, therefore, I wish to salute all cooperators for their contribution towards the growth of the co-operative movement in the country. Through the co-operators’ vision and hard work, many of our people, and indeed our national economy, has benefited immensely from a strong co-operative movement.

Ladies and Gentlemen,

We celebrate 100 years of our co-operative movement at a time when the country is facing a serious food shortage. As you are aware, the Government has stepped up appropriate measures to address this challenge and to ensure that every Kenyan has access to food. In this connection, it is important to note that co-operatives also have an important role to play in enhancing access to food in our country.

Indeed, in the 1970’s and early 1980’s, produce buying co-operative societies were very strong and played a key role in ensuring the availability and affordability of food in the country. Over time, these co-operative societies have declined and some of their food stores that were teeming with business are dormant. In view of the important role that these Co-operatives play in ensuring food security as well as stabilizing prices, there is urgent need for their revival. I urge the Ministry of Co-operatives and Kenyans in general to work towards the revival of bulking and retailing co-operatives such as the Kenya Farmers Association so that members may access farm supplies on time and at affordable prices.

In this regard, my Government has embarked on an intensive programme of encouraging revival of dormant societies in the dairy, coffee and cotton sub-sectors. Since 2003, a total of 734 co-operative societies that were previously dormant have been revived. The newly revived co-operatives are now rendering services to members and availing employment opportunities to our people. Indeed, the co-operatives sector today employs over 300,000 Kenyans directly and many more indirectly. In addition to reviving dormant co-operative societies, there is need for existing and new co-operatives to direct their resources toward industrial activities in form of agro-processing and value addition. Co-operative societies should, for example, venture into value addition to produce and package maize flour. Indeed, since Co-operatives are not profit centered, their participation in cereals milling will lower costs to consumers, make food more affordable and create employment.

Ladies and Gentlemen,

In appreciation of the important role that co-operatives play in our country, my Government has taken a wide range of measures to address the challenges that constrain the growth of the sector. As part of this commitment, my Government established the Ministry of Co-operative Development and Marketing in 2003 with the mandate of promoting the growth of the co-operative sector. I am glad to note that through the Ministry, my Government has been able to address the key challenges facing the co-operatives sector. In particular, we have taken steps to curb corruption in the sector through the Ethics Commission which we have established to ensure management committees of co-operative societies observe high standards of ethics. I call upon members of co-operatives societies to be vigilant in order to ensure finances and properties of societies are accountably and transparently managed.

In addition to improving governance, my Government has also stepped up efforts to recover unremitted SACCO dues from employers. So far, we have recovered over 3.2 billion shillings out of 4.5 billion shillings initially defaulted. We have already appointed commercial banks as agents to follow up defaulting employers and recover the balance of 1.3 billion shillings. I am glad to note that this recovery has tremendously rejuvenated the affected SACCOs, which were on the verge of collapse and enabled them to successfully meet the provident and productive needs of their members.

Ladies and Gentlemen,

As we mark 100 years of the existence of our co-operative movement, it is important for us to think about the dynamics of the modern society as well as reflect on the future. In this regard, I would like to challenge all stakeholders in our co-operative movement to explore ways of improving their activities. There is need for co-operatives to embrace new technologies, venture out into new areas of operations and network their services. The Government will welcome and support proposals that add value to services that co-operatives offer to members. In the same spirit the co-operative movement must play its rightful role in stabilizing prices for both inputs and produce. In order to do this, co-operative leaders should explore new and better ways of doing business. The Government is currently engaged in capacity building in co-operative societies. Our aim is to ensure we have enlightened leadership in the co-operative movement that ensures honesty and efficiency in operations as well as provision of quality services and products.

In conclusion, I want to call upon more of our youth to join and be active members of our co-operative movement. With a positive attitude to life and hard work, our youth, particularly those without formal employment, will earn a sustainable income and indeed prosper through co-operatives. My Government, through the Ministry of Youth and Sports is working towards promoting Youth Co-operative Societies from youth groups that have serious income generating activities.

Indeed our youth have shown through the Youth Enterprise Fund that they are able to apply some of the traits in the co-operative movement. I wish to encourage our youth to work together and embrace the co-operative movement.

Once again let me commend our cooperators for making the co-operative movement in Kenya one of the most dynamic in Africa. I wish you all great prosperity in the years ahead.

Thank you and God bless you all.