Background
The cooperative movement in Kenya has a long and evolving history, closely linked to the country’s social and economic transformation. From its early colonial regulation to its current role in advancing inclusive growth and enterprise development, cooperatives have remained a critical pillar of Kenya’s development agenda.
The formal regulation of cooperative societies in Kenya began in 1931 with the enactment of the Cooperative Societies Ordinance of 1931, which sought to regularize the operations of cooperative societies. This was followed in 1932 by the Cooperative Societies (Registration) (Amendment) Ordinance, strengthening the legal framework for registration and oversight.
During this early period, cooperative affairs were administered under the Office of the Attorney General, then headed by Mr. S. W. P. Forster Sutten.
A major milestone was achieved in 1945 with the passage of the Cooperative Societies Ordinance No. 38 of 1945. For the first time, indigenous Kenyans were officially permitted to form and join cooperative societies and to grow cash crops such as coffee, which had previously been restricted to white settlers. This marked a turning point in economic participation and empowerment.
Between 1946 and 1960, the Department of Cooperative Development was established, and the first Commissioner for Cooperatives was appointed in 1946. During this period, the cooperative function was housed under several ministries as Government structures evolved. These included:
- Ministry of African Affairs
- Ministry of Agriculture, Animal Husbandry and Water Resources
- Ministry of Commerce and Industry
- Ministry of Marketing and Cooperatives
- Ministry of Housing
- Ministry of Cooperatives and Social Services
This phase reflected the growing recognition of cooperatives as a cross-cutting development tool.
In 1974, the cooperative function attained full ministerial status with the establishment of the Ministry of Cooperative Development. This decision followed the Government’s firm conviction that the cooperative movement played a vital role in national economic and social development, particularly in agriculture, savings mobilisation, and rural livelihoods.
The Ministry of Cooperative Development was formally constituted in 1992, consolidating policy direction, regulation, and promotion of cooperatives under one institution.
Between 1997 and 2002, cooperatives were managed under the Ministry of Agriculture and Rural Development as a Department.
From 2002 to 2012, the Ministry of Cooperative Development and Marketing was established, reflecting a stronger emphasis on value chains and market access.
In 2012, cooperatives became a section within the Ministry of Industry and Investment, before being placed under the Ministry of Industry, Trade and Cooperatives through Presidential Executive Order No. 1 of May 2016, as a State Department.
Subsequently, in 2018, cooperatives were administered under the Ministry of Agriculture, Livestock and Cooperatives, again as a State Department.
In 2023, the Government established the Ministry of Cooperatives and MSMEs Development, reflecting a strategic policy shift to align cooperatives with micro, small, and medium enterprises as key drivers of inclusive growth, employment creation, and financial inclusion.
The State Department for Cooperatives now operates under this Ministry, providing policy leadership, regulation, and development support to the cooperative sector nationwide.