Cooperatives crucial in sustainable development

Members of various Savings and Credit cooperatives march along Nyali Bridge in Mombasa County on July 2, 2022, in a procession to mark the 100th anniversary as the world celebrates International Cooperative Day. PHOTO | WACHIRA MWANGI | NMG

When one thinks about the cooperative movement and sustainable development, one cannot help but draw similarities and see a strong connection.

The global cooperative movement has been in existence for more than a century owing to the ethics, values, and principles, focusing on the welfare of people.

As a people-centred movement, cooperatives and their entities continue to surprise many through the business model, which has stood the test of time.

Estimated to have one trillion members in the world and 14 million in Kenya, the growth of the cooperative movement shows that solutions to some of society’s challenges can be found.

Cooperatives have provided value to millions of people where they operate, improving their quality of life.

In 2018, the Kenya National Bureau of Statistics (KNBS) data shows the overall marketed production by cooperatives in the agriculture sector was Sh497 billion.

Many of the members who rely on the income from the agricultural sector have been able to educate their children, access medical care and become self-reliant.

This in turn has enabled families to advance through life from one generation to the next with many attaining a better standing in society.

In Kenya, about 63 percent of the population derives their livelihood directly or indirectly from the cooperative movement.

The savings mobilised by Saccos through deposits of more than Sh564 billion, according to 2021 SASRA data, tells a story of a receptive attitude towards a saving culture.

The question of sustainable development may have answers from different quarters. However, what is sure is the power of cooperatives as a major contributor in driving communities to achieve this goal.

This realisation led the United Nations to consider cooperatives as a strategic partner in attaining the Sustainable Development Goals (SDGs).

Kenya’s economy relies on the agricultural sector, which contributes 33 percent to the gross domestic product.

Enabling agriculture-based cooperatives to realise their full potential through education and learning, funding and market access can spiral societies to new levels that will transform communities and the nation.

Access to information on increasing yields and the knowledge of new technology will increase production volumes and revenue for societies, translating to a higher economic power for the members.

Funding from strategic partners and the government is also a catalyst for growth. Where cooperatives in different sectors have a clear strategic plan and sound leadership, access to funding can enable societies to execute their plans.

Funding could take various forms, including building new factories, completing housing projects, purchase of machinery and equipment.

As cooperatives produce more and have a ready market, local or foreign, they will create jobs. This will provide financial strength to the members and communities, sustaining them with a steady income and eradicating poverty.

Providing affordable homes is an area where cooperatives in Kenya have a wealth of experience. Cooperatives can be instrumental in making this objective a reality due to the deeply embedded values, which make them stand out as a credible partner.

Various housing cooperatives have developed quality homes for their members. In addition, some of the cooperatives own land where they can build affordable homes for members and the public.

Cooperatives stand out as crucial partners in achieving sustainable growth and development.

As countries identify ways to grapple with societal challenges, including cooperatives in the search for a solution will result in a positive outcome and guarantee a sustainable future.

Sustainable economic development requires social protection. Insurance is a critical aspect in ensuring this, as it allows people to live productive lives through the benefits derived from the coverage of life and property.

Using insurance as a risk mitigation tool reduces the chance of people returning back to a state of poverty.

An example is the case of medical bills forcing families to raise money out of pocket to cover the expenses. To provide quality insurance solutions, a cooperative insurer such as CIC Group is an ideal partner.

As a member of the cooperative movement, the company understands the needs of co-operators and is able to design products that meet their needs.

Carrying out research and product innovation responsibly is a unique trait. Using innovation, products should be designed in a way that fits the end user for maximum value.

CIC Group is able to do this owing to the common values and principles it shares with other cooperatives.

Insurance solutions that have a clear focus on the customer build resilience by cushioning families thereby promoting economic growth.

Cooperatives stand out as crucial partners in achieving sustainable growth and development.

As countries identify ways to grapple with the challenges in society, including cooperatives in the search for a solution will result in a positive outcome and guarantee a sustainable future.

The writer is the GM of Cooperatives at CIC Group.