Did you Know?

A peek into Kenya's cooperative sub-sector: statistics

DID YOU KNOW?

Below are some facts about the cooperative sub-sector which I though you should know about:

• There are over 13,800 cooperatives in Kenya alone?
• That the first cooperative to be formally registered in Kenya was in Kenya Co-operative Creameries Limited (the famous KCC) on 8 February 1932?
• In 2015, KCC marked 84 years since registration?
• 1,029 cooperatives were registered between 1932 and 1963, just before Kenya’s independence?
• In 1963 alone, over 100 cooperatives were registered?
• To date (2015), there are over 6,878 savings and credit cooperatives?
• Out of this number, only 1,995 are active, meaning they take deposits and issue loans?
• As of December 2013, 215 savings and credit cooperatives were operating front office services?
• As of 2014, only 184 out of the 215 savings and credit cooperatives had been licensed by SASRA to operate front office services?
• The fate of the 31 unlicensed front-office operating savings and credit cooperatives is yet to be established.
• Over 60 savings and credit cooperatives have changed their names between 2010 and 2014 to reflect a national outlook and be more competitive in the changing financial services landscape?
• Savings and credit cooperatives, especially the front-office operators, have been participating in the Financial Reporting Excellence (FiRe) Award?
• The number of savings and credit cooperatives which participated in the FiRe award is as follows: 2010 participants [10 SACCOs]; 2011 participants [9 SACCOs]; 2012 participants [17 SACCOs]; 2013 participants [27 SACCOs]; & 2014 participants [17 SACCOs]?
• Interestingly, the licensed savings and credit cooperatives who participated and won in the FiRe awards have been the licensed type?

Key research questions arise from the simple statistics listed above. Below are some five examples:

(1) Why is the proportion of dormant savings and credit cooperatives so high (i.e., over 71%) in Kenya?

(2) Despite there being a regulator to oversee the front office savings and credit cooperatives, why is the conversion rate (3%) so low?

(3) What challenges have been faced by the 31 savings and credit cooperatives that never managed to obtain licenses from the SASRA as of 2014?

(4) What can be done to improve the number of savings and credit cooperatives participating in the FiRe awards?

(5) What are the characteristics of the cooperatives with over 50 years of experience? What has kept them going?

...and so forth....