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transcript
Ensuring supportive legal frameworks for co-operative growth East African Community (EAC) Co-operative Societies Bill, 2014
ICA Regional Assembly
Intercontinental Hotel
Nairobi, Kenya
Stephen Muchiri
17th November 2014
Presentation outline
1. Overview of Eastern Africa Farmers’ Federation
2. Justification for the EAC Coop Societies Bill, 2014
3. Overview of the process
4. Updates on the status of the EAC Coop Bill
Eastern Africa Farmers’ Federation
Co-operative Alliance of
Kenya
Tanzania Federation of Co-operatives
Uganda Co-operative Alliance
National Coop Confederation
of Rwanda CAPAD, Burundi
IMBARAGA
KLPA/ KENAFF
•22 member organizations •10 countries
Justification for the EAC Coop Bill
Need to justify why a Regional Law is necessary. MUST ADD VALUE to the co-
operative movement in each EAC partner state
1. To exploit opportunities in the regional integration process
2. To adopt best practices across the region and internationally
3. To remove constraining clauses in the existing laws
4. Co-operatives are an ideal business model. Need for
incentives/framework/standards for cooperatives
5. Responds to Recommendations of 10th ICA Africa Co-operative
Ministerial Conference
Justification 1: Exploit regional integration agenda
• East African Community (EAC) now a common market – free movement of goods, services & other factors of production. Vision: people-centered
• EAC a large regional market - population > 140 M
• USD 17 Billion worth of imports (excluding oil) in 2008 agriculture, machinery, steel, etc
Justification 2: Adopt best practices
Need to adopt good practices across the region, where appropriate
1. Agency to promote and regulate co-operatives Rwanda Co-
operative Act 2007
2. Formation of East African Co-operatives (members from any of
the EAC Partner States) Regulations for European Co-
operative Societies
3. Separate regulatory arrangement of SACCOS in Kenya SACCOS
Societies Act 2008
Justification 3: Coops a good business model Statistics from Kenya
• SACCO loans in 2012 – USD 2.6 Billion
• 40% of all milk in Kenya is marketed through Coops (excluding door-to-door sales)
• 56% of Kenya’s national coffee output – through Coops
• Co-operative Bank of Kenya – 3rd largest bank in EAC
Justification 4: 10th ICA Africa Recommendations • Recommendation 8: Stronger Regional Collaboration
• Recommendation 2: Co-operative development policy
and legislation. All countries should review policies and
laws before the next Ministerial Conference
• Recommendation 17: Engagement with regional
economic communities
Chronology of events
1. Commissioning a study in 2009: Comparative analysis of co-operative legislations in Eastern Africa – Ethiopia, Kenya, Tanzania and Uganda;
2. March 2010: Workshop in Nairobi to discuss and validate the findings of the study;
3. June 2011: Convening a think tank to critique the draft regional policy and program document. The think-tank was convened at the Co-operative College of Kenya in Karen, Kenya (MUCCOBs);
April 2012: EAFF paid courtesy call to the EAC Secretary General and the EALA Speaker Speaker informed us of the procedures for law-making in EALA, and strongly encouraged to pursue our agenda
May 2012: Submission of the draft regional legislation to the Committee of Agriculture, Tourism and Natural Resources, East African Legislative Assembly (MUCCOBs)
Chronology of events 4. April 2013: MP from Uganda agreed to sponsor the
Bill as Private Members’ Bill in EALA 5. October 2013: MP was granted leave of absence to
advance the Bill. The draft Bill was presented to EALA, and it was unanimously endorsed by the House.
6. October 2013: Think-tank to further discuss the Bill in Nairobi
7. January 2014: 1st Reading of the Bill in Kampala, Uganda
Chronology of events 8. February – July 2014: Comprehensive country
consultations on the Bill in each EAC partner state
o National workshops o District/provincial workshops o Meetings with Ministries of Co-ops; EAC Affairs
9. Experts meeting (August 2014): co-operative experts from MUCCOBs, Ministry of Justice (Uganda) and Co-operative Department (Kenya) reviewed all the comments
12th – 19th Sept 2014: Public Hearings on the EAC Co-op Bill, in each EAC partner state – 60 people: co-ops, media, govt, parliament
29th Sept – 2nd Oct 2014:
Preparing Schedule of Amendments to the Bill. Coordinated by Principle Legal Draftsman (EAC)