What are the different Types of co-operatives?
Agricultural Marketing Co-operatives
These types of co-operatives functions are to collect, process, store, save and market members' produce. These co-operative play a major role as some small
scale farmers would have a hard time marketing their products individually.
They are formed also to protect the interest of small producer by making
available items of their need for production like raw materials, inputs,
chemicals, A.I Services, provision of animal feeds etc
These includes Coffee co-operatives, Dairy Co-operatives, Avocado Farmers co-operatives among others
Savings and credit Co-operatives
SACCOS are the most common types of co-operatives found in Kenya. Their main purpose is to mobilize savings and channel them to individual members as loans for specific development projects at affordable rates of interest.
There are two types of SACCOS namely URBAN and RURAL:
•
Urban SACCOS includes AMICA SACCO, MENTOR SACCO,UNAITAS SACCO among others
•
Rural SACCOS include MTN SACCO, BODA BODA SACCOS, TUK TUK SACCOS among others
Housing Co-operatives
These types of co-operatives are formed to provide residential houses to members. They
purchase land, develop it and construct houses or flats and allot the same
to members.
Acquisition of supplies for building and similar materials and machinery of
all kinds including household furniture and equipment for use in building or
for sale or hire to members is offered to members of these co-operatives.
Some housing co-operative societies also provide loans at low rates of interest to
members to construct their own houses
These includes Kiriti Housing Co-operative, Gikomora Housing Co-operative
Consumer/ Utility Co-operatives
They are generally formed to protect the interest of general
consumers by meeting and supplying members' demand for products and services including food,
clothing and general household goods among other consumer services like water and electricity at an
affordable/ reasonable price with the highest possible quality.
This aim is fulfilled through members running consumer shops and
wholesale facilities where members buy goods at lower prices compared to those
in the market.
They buy goods directly from the producers or manufactures and
thereby eliminate the middlemen in the process of distribution
Processing Co-operatives
They have a similarity to agricultural and marketing Co-operatives. Their main
function however is to process the products for members.
They include MCC in Murang`a and, Kenya Co-operative Creameries among others
Investment Co-operatives
The main objective of Investment Co-operatives is to invest
members’ contributions/ savings in prudently identified ventures in order to
maximize the return on their investment
In Kigumo Sub-County in Murang`a we have Kinyona Investment
Co-operative Society Ltd
Transport Co-operatives
Transport Co-operatives are formed for the purposes of:
1. Purchasing
vehicles and using them to provide public transport services primarily to
members and the commuting public or for hiring/ leasing.
2. Engage
in allied services or businesses such as:
· Importation,
distribution and marketing of petroleum products in accordance with existing
laws
· Operation
of gasoline stations and transportation service centers;
· Importation,
distribution and marketing of spare parts and supplies e.g oils, coolers;
· Marketing of vehicle/drivers insurance
policies
Worker Co-operatives
These co-operatives are owned and controlled by employees. Their
main aim is to improve the lives of working people and increase democracy in
the workplace through worker ownership and control.
The main purpose of worker co-ops is to provide employment for
their members. Each member pays a membership fee or purchases a membership
share. The co-operative’s assets are collectively owned and surplus earnings
are allocated to the workers according to policies established by
the co-op, often in proportion to hours worked by members and with limited
return on shares.
Worker co-operatives
can be formed from different diverse sectors including agriculture, garments,
arts and entertainment, construction, home care and nursing services, mining,
manufacturing, transportation, etc.
uNIONS
A
union is a co-operative society whose membership is restricted to two or more
primary co-operatives operating in the same field of business. The principle
objective of a union is to offer co-operative education, propaganda, training,
and mobilization of savings.
See Different types of Co-operatives Illustrated...
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