law

for improved market access, marketing efficiency by co-operatives;

4) Promote viable co-operative enterprise investments, value addition, processing and manufacturing and

enhance the capacity of co-operatives to conduct research.

5) Encourage co-operatives to take opportunities for partnerships, and joint ventures with other local and

international agencies to acquire resources and skills to enhance their strategic competitiveness and

skills transfer.

The different examples of NACOs are illustrated below:

1.1.1) Co-operative Bank of Kenya Ltd

The Co-operative Bank of Kenya Limited was registered as a cooperative society on the 19th June 1965. The Bank applied for a banking licence to operate under the Banking Act, which was granted later on and it opened for business on 10th January 1968.

The Bank is now incorporated in Kenya under the Company's Act and is also licensed to do the business of banking under the Banking Act. It was initially registered under the Co-operative Societies Act at the point of founding in 1965.

This status was retained up to and until June 27th 2008 when the Bank's Special General Meeting resolved to incorporate under the Companies Act with a view to complying with the requirements for listing on the Nairobi Stock Exchange (NSE).

The Bank went public and was listed on December 22 2008. Shares previously held by the 3,805 co-operatives societies and unions were ring-fenced under Coop Holdings Cooperative Society Limited which became the strategic investor in the Bank with a 64.56% stake.

Co-operative bank has a distinct advantage in co-operative societies spread across all the 47 counties and can therefore provide a reliable alternative for establishing branches countrywide.

The Bank is already in a franchising partnership through Sacco Link which provides wholesale banking services to individual SACCO’s which then provide retail banking services to members through FOSAs

1.1.2) Kenya Co-operative Coffee Exporters (KCCE) Ltd

This was formed in 2008 by small scale coffee farmers to enable them access export markets through enhanced economies of scale and professional expertise in coffee marketing.

KCCE is licensed as a commercial coffee marketing agent that provides small holder coffee farmers with an opportunity to directly sell their produce to the international market. Since its registration producer prices have improved significantly.

1.1.3) Co-operative Development and Information Centre (CODIC) Ltd

This was developed as a one stop shop for co-operative societies on issues of information technology and co-operative development.

The primary function is computerization of cooperative society operations in order to improve efficiency. Among its major achievements is development of software which is used to install ATMs in a number of societies.

1.1.4) Co-operative Insurance Company of Kenya (CIC) Ltd

The Co-operative Insurance Company of Kenya Limited (CIC) was established in 1978 and was formerly known as Co-operative Insurance Services Limited (CIS). In 1999, the company name was changed to the Cooperative Insurance Company of Kenya Limited (CIC)

The name change was part of the company's market repositioning strategy of completely changing the then small company to a respected insurer in the country. It is currently among the largest insurance companies in terms of capitalization and insurance premium

1.1.5) New Kenya Co-operative Creameries (KCC) Ltd

Kenya Co-operative Creameries (KCC) was the first co-operative to be registered on 8th February 1931 under the Co-operative Societies Ordinance.

This society operated very well up to the year 2000 when it was sold to private investors and renamed KCC 2000.

The New Kenya Co-operative Creameries Ltd was registered on the 25th of June 2003. Its predecessor, the Kenya Cooperative Creameries Ltd had operated in Kenya since 1925 but before registration. This makes it the oldest dairy processor in the country.

New KCC has one of the largest network in the dairy industry in East Africa involved in food industry, processing and marketing milk and milk products. The business process of New Kenya Co-operative Creameries Ltd encompasses receiving of raw milk from farmers, processing it into various milk products and marketing and selling the products for the benefit of the company shareholders.

1.1.6) Kenya Planters Co-operative Union (KPCU)

Kenya Planters Co-operative Union (KPCU) was registered 1937 as a national co-operative union for primary coffee co-operatives societies.

The union, however, currently faces some serious challenges necessitated by poor governance structure and dual certificate of registration. KCB had placed the organization under a statutory manager/receiver but has since been lifted pending clearance of the outstanding loan A new board of directors has already taken over from the receiver manager and are in the process of paying the loans

1.1.7) Kenya Union of Savings and Credit Co-operative (KUSCCO) Ltd

KUSCCO is the union for SACCOs in Kenya. It is charged with responsibility of championing issues affecting SACCOs in Kenya through advocacy and representation. The main objectives of KUSCCO are to:

 Promote the organisation and development of viable cooperative savings and credit societies

 Disseminate information concerning savings and credit societies and co-ordinate their operating methods and practice to maintain basic uniformity

 Foster education, training of members, officials and employees of savings and credit societies

 Act as the sole local and international representative and mouthpiece of savings and credit societies

 Help improve the internal management of savings and credit societies by providing a standardized management system.

KUSCCO operations are managed by a board of 15 directors selected by member SACCOs on regional basis.The organisation has its Headquarters in Nairobi and five branch offices in Kisumu, Nakuru, Nairobi, Embu and Mombasa. Each upcountry office serves KUSCCO members within its region. There are sub branches in wider regions to cover all the 47 counties

1.1.8) Kenya Rural SACCO Societies Union (KERUSSU) Ltd

The Kenya Rural Savings & Credit Cooperatives Societies Union (KERUSSU) was registered in 1998 and is the umbrella national cooperative organization for rural SACCOs. KERUSSU brings together rural SACCO societies and other forms of savings & credit associations in Kenya.

The membership of KERUSSU is made up of cooperative societies whose operations are largely based in rural areas of Kenya where:

 The members’ major source of income is from rural based activities such as farming

 The greater percentage of the members live in rural areas

 And where members are largely derived from institutions and establishments such as factories based in rural areas and/or process inputs that are mostly from the rural areas.

The overall goal of KERUSSU is to contribute to improved standard of living in the rural areas of Kenya through appropriate, efficient and effective rural cooperative movement with the capacity to offer accessible and affordable financial services.

The aim of KERUSSU is to work towards empowered and dynamic rural SACCOs offering effective and efficient services to their members.

1.1.9) National Co-operative Housing Union (NACHU) Ltd

NACHU was established in 1979 under the Co-operative Societies Act (Cap 490) to coordinate shelter issues through the cooperative model by providing financial and technical service.

 Its formation was in response to the great demand for decent and affordable housing among the low income group. NACHU therefore is an organization whose membership is made of registered primary housing cooperatives.

 The co-operative movement has an obligation under Kenya Vision 2030 to provide 25% of annual housing demand in Kenya.

 NACHU’s strength is its holistic approach to shelter development: housing microfinance combined with advocacy and technical services that allow cooperatives to gain access to land and infrastructure, and ensure quality construction.

 NACHU also supports member cooperatives with training in financial management, governance, and other important Cooperative topics including HIV/AIDS prevention.

1.1.10) Cooperative Communication Holdings Ltd (CCHL)

Co-operative Communication Holdings Limited (CCHL) is a National Co-operative Organization (NACO) which was registered on 8th March 2010 to enter into partnership with the private sector in the provision of Information Communication Technology (ICT) services to the co-operative movement as a vehicle for investment in this fast growing sector. The core activity of the CCHL is to partner with the private sector on areas of ICT in order to maximize returns to the members and ensure access to information through the provision of affordable products and services thereby promoting their social economic welfare. ICT is critical to the country’s development and CCHL is strategically placed to provide the best ICT products.

MOUNT KENYA UNIVERSITY

SCHOOL OF LAW

BACHELOR OF LAWS (LLB)

COOPERATIVES & PARTNERSHIPS LAW (BLW 2204)

CAT I

GROUP II (2.1, CLASS A, DAY)

NATIONAL COOPERATIVE SOCIETIES (NACOs)

SUBMITTED TO FERD MOYOMBA

27/2/2018

GROUP MEMBERS

BETH KARIMA……………………………………………..BLAW/2016/53219

FRANCIS MUTINDA………………………………………….BLAW/2016/56889

RUTH GACHUNGI……………………………………………..BLAW/2016/53168

ALEX GITONGA………………………………………………BLAW/2016/53736

JOEL WAKHUNGU……………………………………………..BLAW/53418/2016

CASEY KIOKO…………………………………………………BLAW/53356/2016

LYNN MBOGA……………………………………………………BLAW/2016/56729

DAVID MUTURI………………………………………………….BLAW/2016/57435

STEPHANIE YOGO…………………………………………….BLAW/53923/2016

ANTHONY WAZIRI……………………………………………BLAW/56779/2016

ZEDEKIAH ODINGO………………………………………….....BLAW/53665/2016

GLADYS MBURU………………………………………………BLAW/53665/2016

MILLICENT ANYANZWA……………………………………..BLAW/53979/2016

ABDIAZIZ AHMED………………………………………………BLAW/2016/58120

IVARONGA MALALA……………………………………………BLAW/50026/2016

ALFRICK RIOBA………………………………………………….BLAW/56464/2016

ANDREW MAINA……………………………………………….....BLAW/53995/2016

REFERENCE/BIBLIOGRAPHY

Cooperatives Society Act Cap 490

History and Organisation of Cooperative Development and Marketing Sub Sector in Kenya- Ministry of Industrialization & Enterprise in Kenya

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