Treasury allocates Sh 4.6bn to the Co-operative sector receives


In the 2019/20 National bkmdklvcmkludget es­timates, the Co-operatives department has been allocated Sh732, 900,000 to cover its Recurrent Expenditure for the financial year ending 30th June, 2020.This is in addition to Sh 3,840,500,000 required by the Co-op­eratives Department for Development expenditure during this fiscal year.

It was also allocated Sh 160 million on a Cooperative Management Informa­tion System, Sh 230 million on Coffee In­dustry Revitalization, Sh 300 million for Cherry Coffee Revolving Fund and Sh 38 million as Support to Improvement of Added Value to Coffee.

The Department is expected to build capacity of County Govern­ments to ensure it handles the Co-op­eratives docket, which has since been devolved. It will also spend Sh 407.5 million in the acquisition of equipment and machinery for New KCC, and Sh 5 million for develop­ment of SASRA Risk-based Supervi­sion System.

The Department targets to audit 4,600 registered Saccos in 2019/20, register 1,700 co-operative societies and also un­dertake audit of coffee co-operative so­cieties in 28 counties and operationalize access to the Cherry Coffee Revolving Fund. It also aims to increase coffee pro­duction by 25 per cent in 31 coffee grow­ing counties relative to financial year 2018/19.

Statistics show that the State Depart­ment for Co-operatives was allocated Sh1.34 billion in the 2017/18 financial year. This comprised of Sh 789.5 million and Sh 555 million for current and capital expenditures respectively.

During the 2015/16 to 2017/18 finan­cial years, the State Department disbursed Sh 700 million for settlement of debts owed to coffee cooperatives, Sh 1.7 bil­lion coffee STABEX Fund owed to Coop­erative Bank and Sh 442 million owed to dairy farmers by thedefunct Kenya Co-operative Creameries (KCC).

National Treasury also allocated Sh 323.5 million owed by STEGRO, Bunya­la and Kipkelion cooperatives, disbursed Sh 957.5 million to facilitate moderniza­tionof New Kenya Co-operative Cream­eries (New KCC), Sh155 million to SASRA for the development and imple­mentation of the Risk Based Supervision system and also embarked on digitization of cooperative services at a cost of Sh 30 million.

The State Department also reviewed the Co-operative National Development Policy, facilitated increase of cooperative savings from Sh600 million during the 2015/16 financial year to Sh 690 million as at June, 2017. The department also re­covered outstanding remittances amount­ing to Sh 911 million.

During this financial year and in the medium term, the State Department will finalize modernization of the New KCC and increase its Dairy Processing capac­ity from 600,000 to 1,000,000 litres per day.

While it had plans to digitize all cooperative services and operational­ize Cooperative Share Trading segment at the NSE, these capital expenditures programmes have been withdrawn. The State Department has also shelved plans to modernize several Cooperative Cotton Ginneries.

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