Ushirika Day 2025 Theme: “Cooperatives Build a Better World”
Kenya’s vibrant cooperative sector is preparing for a historic moment as the United Nations officially declares 2025 as the International Year of Cooperatives, marking a major recognition of the sector’s transformative role in economic development and social inclusion.
With over 750,000 people employed directly and indirectly in Kenya’s cooperative sector, this global spotlight is expected to boost confidence, expand opportunities, and spark key reforms across the country’s cooperative landscape.
Global Recognition Reinforces Local Impact
Daniel Marube, the CEO of the Cooperative Alliance of Kenya (CAK) and Vice Chairman of the Ushirika Council, welcomed the UN recognition, stating it reflects the relevance and global importance of the cooperative business model in addressing today’s challenges.
“The world has recognised that the cooperative model has solutions to many of today’s challenges,” Marube said. “This year’s theme, Cooperatives Build a Better World, speaks directly to the transformational impact cooperatives have had in Kenya.”
The UN’s declaration, passed during the General Assembly in June 2024, marks the second International Year of Cooperatives, following the inaugural year in 2012. According to the UN Department of Economic and Social Affairs, cooperatives are central to achieving the Sustainable Development Goals (SDGs) by 2030.
“Cooperatives offer innovative solutions for sustainable development,” said Li Junhua, UN Under-Secretary-General for Economic and Social Affairs.
Cooperatives in Kenya: A Vital Engine for Growth
Kenya has long held a leading position in Africa’s cooperative movement, with thousands of active cooperatives across diverse sectors — from agriculture, dairy, housing, and transport to financial services, energy, and construction.
Speaking ahead of Ushirika Day 2025, to be celebrated on July 12, Cooperatives and MSMEs Development CS Wycliffe Oparanya emphasized the sector’s contribution to national development, but also warned of pressing issues that must be addressed.
“We must uphold transparency and accountability within our cooperatives,” Oparanya said. “Too many financial losses have occurred due to poor governance, and this must be addressed if we are to grow the sector.”
Challenges: Governance and Financial Mismanagement
Despite its achievements, the cooperative sector in Kenya faces serious governance and regulatory challenges. Oparanya cited weak internal controls, poor leadership, and irregular financial practices as key factors eroding public trust in cooperatives.
In response, the CS directed the Commissioner for Cooperative Development to:
- Establish a clear dividend policy
- Ban the practice of borrowing to pay dividends
- Prevent dividends from being declared during loss-making periods
- Enhance training in governance, financial literacy, and innovation
“Sustainability begins with strong governance. We must stop paying dividends from borrowed funds or in loss-making conditions,” Oparanya emphasized.
New Opportunities in Emerging Sectors
Marube highlighted that Kenya’s cooperative sector is evolving beyond traditional roles, with new prospects emerging in worker cooperatives, especially in energy, construction, and engineering.
“Worker cooperatives could become one of the biggest youth employers in the next decade—if adequately supported,” he said.
He also cited success stories that demonstrate the power of cooperative-led innovation:
- Njuriga Coffee Factory (Nyeri) farmers now earn Sh172 per kg of cherry through cooperative aggregation and direct marketing.
- Meru Dairy Cooperative pays Sh52 per litre, including bonuses — stabilizing incomes for thousands of smallholder farmers.
These examples underline the cooperative model’s role in agricultural transformation, market access, value addition, and financial empowerment.
Cooperatives Leading in Housing and MSME Development
According to Marube, Kenyan cooperatives are now financing more housing projects than commercial banks, positioning themselves as leaders in affordable housing development.
He noted that even informal groups like chamas have evolved into cooperative-like platforms that offer funding, savings, and capital to micro and small enterprises (MSMEs) — especially for women and youth entrepreneurs.
“Cooperatives are people-centered, member-owned, and sustainable,” Marube said. “That’s why, globally, cooperatives are among the most resilient business models.”
Ushirika Day 2025 Celebrations in Kenya
To mark Ushirika Day 2025 and the start of the International Year of Cooperatives, Kenya has planned several events throughout July:
- A blood donation drive was held on July 3 and 4, in partnership with the National Blood Transfusion Centre and Kenyatta National Hospital
- A three-day national exhibition will take place from July 10 to 12 at KICC, showcasing cooperative innovations, technologies, and success stories from across the country
“These celebrations are not just about looking back, they are a call to action,” Marube said.
Policy Reform: Calls for National Cooperative Bill Passage
Sector leaders are now urging lawmakers to pass the National Cooperative Bill, which is currently before the Senate. The Bill is expected to:
- Strengthen regulatory frameworks
- Enhance cooperative transparency
- Improve member protections
- Encourage investment and innovation
“We urge MPs and senators to gift the movement by passing the Bill during this International Year of Cooperatives,” Marube said.
He also appealed to county governments to:
- Allocate at least 30% of their development budgets to cooperative activities
- Employ qualified cooperative officers
- Offer extension services to help cooperatives in rural areas thrive
Since cooperatives are a fully devolved function under Kenya’s 2010 Constitution, counties play a central role in the movement’s future.
A New Chapter for Cooperatives in Kenya
With 2025 now officially recognized as the International Year of Cooperatives, Kenya’s cooperative sector finds itself at a pivotal moment. Leaders hope this momentum will:
- Mobilize greater investment and financing
- Foster youth and women inclusion
- Catalyze innovation in MSME and informal sectors
- Anchor cooperatives in national and county economic planning
“Cooperatives are key partners in the government’s Bottom-Up Economic Model and the Kenya Vision 2030,” Marube emphasized.
As Kenya joins the global cooperative family in celebration and reflection, the message is clear: With strong policy support, transparent leadership, and empowered members, cooperatives can truly build a better world.