Definition and classification of cooperative societies
Cooperative societies have varied classification depending on what their members are concerned with.They include:
Agricultural Marketing Societies
They are cooperative in the Agricultural and marketing sector.Their functions are to collect,process,store and save members’ produce.These cooperative play a major role as some small scale farmers would have a hard time marketing their products individually.
Savings and Credit Co-operative
They are the more common type 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.
They have a similarity to agricultural and marketing.Their main function however is to process the products for members.An example is the Kenya cooperative creameries.
The Processing Co-operative
They are involved in purchasing vehicles and using them for public transport or for hiring or leasing.
They may also be formed for management of public transport vehicles of their members.
The Insurance Co-operative
They have the project of developing and providing insurance services based on the cooperative principles.They also provide insurance covers to cooperative societies.
They buy and develop houses for the members or sell houses to members at lower prices.
Movement is the heart of this country’s progress, cutting across all sectors. It is based on principle of pooling meager recourses for the common benefit of all.