Sh.1 billion Corona kitty mooted to cushon Sacco members

By Sammy Chivanga

The State Department of Co-operatives is rooting
for a Covid-19 response team to mobilise up to Sh1 billion kitty to support
members of co-operative movement and their families as coronavirus continues to
cause layoffs and salary cuts.

A concept note from the state department shows the
unit wants to put up non-clinical emergency response plan akin to that of the
national emergency response fund, but to specifically serve co-operative sector.

This will be crucial for the co-operative
movement members given that the tough economic times facing many sectors such
as aviation, hospitality and tourism poses survival risks to families.

The State department says the Co-operatives’ fifth
principle that focuses on education, information and training as well as the
seventh principle on concern for the community means that the sector cannot
take a back seat.

“The sector is obligated to join efforts with the
national and county governments to mitigate the spread of this pandemic and
manage its impact in the sector and the economy at large,” reads the concept
note in part.

“The sector will focus on non-clinical activities
and mobilisation of the necessary financial resources to support in minimising
the potential vagaries of Covid-2019 in the sector and the general public.”

Part of the non-clinical activities will be working
on reducing the spread of the Covid-19 pandemic in consultation with the
Ministry of Health, and relaying government communications on safety measures
to co-operative societies’ members.

The activities will be co-ordinated by the
Co-operative Coronavirus Response Committee (CCRC), which will be charged with
providing strategic and technical leadership in the sector to navigate through
the pandemic.

The response team will help address shortage of
food, unemployment, schooling challenges, potential tensions and resultant
unrests among co-operative movement members and the general community.

The state department says this is the moment for
the global co-operative family to review its commitment to its principles and
values as a third force in economic development.

Kenya continues to witness rising cases of the
coronavirus since the first case was reported in the country on March 13.

Coronavirus cases have soared above 4374, being the
highest in the East African region as government warns that the disease has hit
community transmission phase and will require strict adherence to social
distancing measures to contain it.

This has impacted the pace of growth in the co-operative
movement, just like it has pricked the rest of financial sector players such as
banks, as state extends curfew and containment orders.

Kenya has more than 24,000 registered Co-operative
societies and a membership of over 14 million having mobilised savings of over
Sh640 billion or about a third of the national savings.

The State department notes that many co-operatives
are largely in the rural areas with most of its membership drawn from the
bottom-of-the-pyramid.

 “This has
led to staff lay-offs, which would have far reaching ramifications to the
co-operators. The Co-operative sector’s support will target these populations
as we also endeavour to reach out to the general populace through distribution
of survival kits,” it adds.

The survival kits will include rice, beans and
green grams-each two kilogrammes and one litre of cooking oil accompanied with
two packets of maize floor. The kit will also come with face masks and soap.

The sector intends to provide the survival kits to
500,000 co-operative households directly affected by the pandemic through loss
of income.

“Information on the targeted beneficiaries will be
obtained from the affected co-operative societies through whom the survival
kits would also be channelled,” reads the concept note.

This is expected to complement other moves being
conducted through the national Covid-19 response fund that has marshalled over
Sh2.56 billion from corporates and individuals.