COOPERATIVE

ORGANISATIONS

• It is an association of persons who

have voluntarily joined together
to meet their common economic,
social and cultural needs and
aspirations through a jointly and
democratically controlled
enterprise.
The cooperative form of business aims at
organizing and rendering services to its
members but not making profits,
cooperation but not competition, self help
and moral solidarity form the foundation of
cooperative organization.

Cooperatives provide vital health facilities,

housing and banking services, education
and gender equality and protect the
environment and workers rights
FORMATION OF COOPERATIVE
ORGANISATIONS
• 1) The members must be bound together by a
common bond e.g. occupation, locality etc.
• 2) The cooperative society must have at least
30 members capable of entering into a
contract.
• 3) Members must present a joint application
to the registrar of cooperative, showing
particulars, of members’ objects, share capital,
etc
• 4) A copy of the bye-laws governing the
cooperatives
FEATURES OF COOPERATIVE
ORGANISATIONS
• Democratic management election
and control
• Separate legal entity
• Voluntary membership
• Service motto
• State control
• Members economic participation
 SCOPE /TYPE OF COOPERATIVES
1) Market cooperatives/Sale cooperatives:
Associations of independent producers
organized for the purpose of arranging for the
sale of their output E.g. the former coffee
marketing board, lint marketing board etc.

2) House cooperatives: Associations of persons

that aim at securing houses or obtaining
accommodation at fair and reasonable charges.
These secure loans and buy or build for their
members.
SCOPE /TYPE OF
COOPERATIVES
4)Producers cooperatives /industrial cooperatives:
These are associations of small producers formed
with the objective of countering efforts of large
producers, foreign producers and secure favorable
government policies. These normally use local; raw
materials and equipments such as U M A ,Kisenyi
maize millers associations etc

5)Consumers cooperative Societies: Associations of

persons formed basically for obtaining member’s
day to day requirements of consumer goods at
reasonable prices .e.g. Nigiina (women Groups)
SCOPE /TYPE OF
COOPERATIVES
6) Credit cooperatives: Associations of persons
whose major purpose is to extend short-term
financial accommodation or loan to members
at favorable terms. However these members
have unlimited liability such as Kiira SACCO,
Bonna Bagaggawale scheme etc.
MERITS OF COOPERATIVE
SOCIETIES
1) Continuity or long-term survival
2) Democratic management
3) Limited liability
4) Government assistance
5) Reduce inequalities
6) Ease of formation
DEMERITS OF COOPERATIVES

1) Lack of secrecy:
2) Government interference
3) Limited capital:
4) Lack of harmony and
motivation
5) Poor management:
REASON FOR FAILURE OF
COOPERATIVES BEFORE
•Government interference
•Poor infrastructure
•Price fluctuations
•Political instability
•Liberalization of the economy
•Poor financing
REASON CONT’D
•Lack of harmony
•Poor methods of production
•Poor management
•Natural calamities
•Lack of diversification
REASONS FOR THE REVIVAL OF
COOPERATIVES
• Improve on the standard of living
• Strengthen the private sector
• Eradicate poverty
• Equip members with practical and theoretical skills
• Mobilize special interest groups to have a say in
society i.e. youth, women, people with disabilities
and the elderly.
• Provide employment to society
• Reduce income inequalities
• Reduce regional imbalances
 Thank you
Questions and
Comments