The United States announced Wednesday a new KES 2.9 billion ($19.7 million) investment to bolster Kenya’s cooperative sector over the next five years.
The U.S. Agency for International Development will provide the funding, which is expected to benefit at least 500,000 Kenyan cooperative members and households. U.S. and Kenyan private-sector partners are slated to contribute an additional $9.3 million to the projects.
“Cooperatives are a vital part of the Kenyan economy and society, providing essential services to millions of Kenyans,” said David Rogers, deputy director of USAID’s Kenya Office of Economic Growth. “They are also a powerful tool for promoting inclusive economic growth and reducing poverty. That is why USAID is proud to support the cooperative movement in Kenya.”
Read more: How sustainability bonds can help cities mitigate extreme weather events
The funding will support projects aimed at increasing cattle cooperative incomes by improving genetics to boost milk production; reducing youth unemployment through worker cooperatives; advancing cooperatives’ capacity to improve health outcomes; modernizing savings and credit cooperatives through climate-smart loans and digital management technologies; and supporting cooperative apex bodies in localizing and implementing cooperative policies.
The activities are also expected to facilitate more than $45 million in loans to small and medium businesses, with an estimated 347% return on investment over the five years when including leverage and loans.
Rogers announced the investments Wednesday at the Cooperative Development Partners Consultative Forum hosted by the State Department for Cooperatives. A range of stakeholders attended the event.
The Cooperative Development Program is USAID’s flagship initiative supporting cooperatives in Kenya, where it has worked with local partners for over a decade to build capacity.
