Cooperative Leaders Propose an Advisory Council to Strengthen Governance and Sector Representation

The Cooperative Alliance of Kenya (CAK) convened a two dayleadership forum bringing together chairpersons and vice chairpersons

Leaders in Kenya’s cooperative movement are considering the establishment of a national advisory council to strengthen governance, improve policy engagement, and ensure broader representation across the sector.

The proposal emerged during a two-day leadership forum convened by the Cooperative Alliance of Kenya (CAK), bringing together chairpersons and vice chairpersons from savings and credit cooperatives (Saccos), agricultural, housing, transport, consumer, and other cooperative subsectors.

The meeting focused on governance, leadership, advocacy, and the future direction of the cooperative movement, with participants emphasizing the need for stronger coordination among leaders as the sector continues to expand.

CAK Chairman McCloud Malonza said the forum was aimed at enhancing leadership capacity and improving the representation of cooperative members. “We are discussing how we can advance our advocacy and representation of our members effectively,” he said.

A key area of discussion was the relationship between boards and management teams. According to Malonza, governance challenges have emerged in some cooperatives as institutions grow and leadership transitions become more complex.

CAK Chairman McCloud Malonza addressing the leaders forum
CAK Chairman McCloud Malonza addressing the leaders’ forum

“We want an effective system that works to serve the members, to avoid self-serving and also conflict between the management and the board,” he said. He noted that boards play a critical role in setting organizational strategy and culture and must remain focused on members’ interests.

“We need to ensure that whatever they do, they know they are not doing it for themselves but for the members who put them there,” he added.

One of the main resolutions from the meeting was the proposal to establish an advisory body comprising Chairpersons from various cooperative sectors and regions. According to Malonza, the council would provide structured advice to CAK while ensuring the diverse interests of cooperatives are reflected in policy discussions and advocacy efforts.

“We are trying to think about how we establish an economic advisory council that will advise CAK from all sectors,” he said.

The proposed structure would include representation from sectors such as coffee, tea, dairy, fisheries, housing, transport, and financial cooperatives. Rather than being limited by a fixed number of members, representation would be determined by sectoral and regional needs.

“We want a very clear representation whereby every member will be representing a certain sector or a certain region,” Malonza explained. The council is expected to provide a channel through which government agencies, regulators, and policymakers can obtain coordinated feedback from cooperative leaders on sector issues.

Malonza stressed that the advisory body would not be political but would serve as a mechanism for consultation and representation. “It is not a political outfit. It is just for advice”.

The initiative he added is also intended to ensure that future legislation and policy reforms reflect the needs of all cooperative subsectors. “When we talk about a cooperative bill, it should capture the aspirations of every sector without leaving them out.”

Participants also examined ways of improving governance within cooperatives by clearly defining the responsibilities of boards and management.

Malonza said leaders were trained on effective governance practices, including board oversight, leadership responsibilities, and productive engagement with management teams.

 Governance experts, including representatives from the Institute of Directors, facilitated discussions on board effectiveness, leadership conduct, and decision-making processes. The training also highlighted the importance of leadership behaviour in shaping organizational culture.

He added that stronger governance structures would help address disputes that occasionally arise between elected leaders and management teams.

CAK Chief Executive Officer Daniel Marube described the forum as a significant step in creating a dedicated platform for cooperative chairpersons to exchange experiences and strengthen leadership across the movement.

“This is a very special platform we have developed where the leaders, as chairmen, can meet and share knowledge and experiences on how they manage their cooperatives,” said Marube.

He noted that some of the participants were newly elected leaders who required induction on governance and board responsibilities. “About a third of the people attending were new chairmen who are now being inducted into how to handle and manage board meetings,” he said.

The training focused on clarifying the distinct roles of chairpersons, vice chairpersons, boards, and management teams to minimize role conflicts that can undermine institutional performance.

Marube emphasized the central role of leadership in determining the success of cooperatives. He said participants agreed that cooperative leaders should work together more closely to influence policy and strengthen the sector.

CAK Chief Executive Officer Daniel Marube
CAK Chief Executive Officer Daniel Marube

“The chairmen have said they will speak in one voice and support CAK in advocating for good regulations, good laws and good development upon which cooperatives will be running,” he said.

Participants welcomed the proposal, describing it as a long-awaited opportunity for cooperative chairpersons to engage directly on governance and policy issues.

Suluhu DT Sacco Chairperson Charles Virah said the forum addressed a longstanding gap within the movement.  “It was quite an important forum where chairpersons were meeting and discussing the movement at large,” he said.

Virah observed that while chief executive officers have traditionally had opportunities to meet and share experiences, chairpersons lacked a similar platform despite their strategic leadership role. “We as the chairpersons have been looking forward to this kind of forum where we can interact and share,” he said.

Suluhu DT Sacco Chairperson Charles Virah
Suluhu DT Sacco Chairperson Charles Virah

Discussions covered governance, leadership, conflict resolution, and collaboration between boards and management, while also examining common sources of disputes within cooperatives and possible solutions.

Virah said the proposed advisory structure would create a stronger link between cooperative leaders and government institutions, enabling concerns from members to be communicated more effectively.

“We want to create that forum, that link, that in future can always sit and engage with the ministry and address issues affecting the movement,” he said.

He argued that such a platform would allow cooperative leaders to contribute more effectively to policy and legislative discussions affecting the sector.

The forum concluded with a commitment to continue consultations on the structure and mandate of the proposed advisory council.

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