09/09/2026
Fit-for-purpose cooperative leadership is new test for boards
Kenya’s cooperative movement has grown into a powerful pillar of the economy, but its continued success will depend increasingly on the quality of leadership steering it through a rapidly changing financial and technological environment.
According to For Ruth Bita, who was the lead moderator during the Cooperative Alliance of Kenya (CAK) future ready saccos and cooperative forum: the challenge facing cooperatives is no longer about raising more capital, expanding membership or increasing dividends. It is about whether those entrusted with member-owned institutions possess the skills required to manage increasingly complex organisations.
“The biggest threat to the Sh250 billion Kenyan cooperative sector is not a fluctuating economy, inflation, or fintech competition. The single greatest threat is obsolete leadership,” Bita says.
This warning comes at a time when cooperatives, particularly Savings and Credit Cooperative Societies (SACCOs), are operating in an environment dramatically different from the one in which many of their governance structures were established. Members now expect instant digital services, competitive financial products, transparency, professional investment management and the ability to transact conveniently from their phones.
However, governance in some cooperatives continues to be shaped by traditional approaches in which leadership positions can be influenced more by popularity, personal networks and length of association than by technical competence.
“Many cooperative boards are leading 21st-century digital-first financial networks using a mid-20th-century mindset,” Bita says.
The consequences of such a mismatch can be significant as cooperatives increasingly make decisions involving technology investments, property development, financial markets, cybersecurity, credit risk, data protection and sophisticated partnerships. These are areas that require directors to understan