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)