1974: The Co-operative Department, which had operated under several ministries since the colonial period, is upgraded to full ministry status as Ministry of Co-operative Development, to further stimulate the growth of the movement.
1968: The first Board of Directors comprises Mr B Kathanga (Chairman), Hon C W Rubia, M P (Vice-Chairman), Mr J K Muthama, Mr A H Kamau, Mr M Gheewalla, Mr J J Musundi, Hon D N Kuguru, M P, Mr S Rintaugu and Mr S Mogire.
In this first year of business, the Bank posts a profit of Kes 172,000 from a capital base of Kes 634,000, deposits of Kes 5.3 million and total assets of Kes 5.7 million.
The Co-operative Bank opens for business on 10th January 1968 with a modest capital base of Kes 255,000. The Government supplements the capital with a Kes 214,000 interest-free loan repayable in 10 years. The Banking Act, however, requires banks to have a minimum capital of a 'staggering' Kes 2 million. The Government grants an exemption and offers a grace period within which the required capital is to be raised.
The Commissioner for Co-operative Development, with the support of KNFC, is obliged to direct that all co-operative society funds invested with other banks be transferred to the Co-operative Bank. The Commissioner further advises that all co-operatives should buy shares in the Bank. This tremendously increases the bank's deposit and capital base, laying a firm foundation for the bank.
1966: The 1945 Ordinance is replaced with the Co-operative Societies Act. The main essence of the Act was increased oversight of the co-operative movement by the government.
1965: Co-operative Bank of Kenya is registered as a co-operative society on the 19th June 1965. It does not however commence operations as it is not registered under the Banking Act. In this status, it cannot fulfil the main objective for its establishment, which is to mobilise financial resources and provide banking services to the co-operative movement. The Bank applies for a banking licence to operate under the Banking Act, which is granted later on in 1968.
Sessional Paper No. 1 titled African Socialism and its Application to Planning in Kenya is unveiled. In this document, co-operatives are seen as very important tools for development.
1964: Due to the need to bring about a more efficient and effective co-ordination of both internal and external assistance in addition to providing relevant financial services to the co-operative movement, the Government considered the idea of setting up of a co-operative bank. It is deemed necessary to conduct a survey to ensure the bank is set on sound footing.
As a result of initiative and advice of KNFC, a group of people from the Department of Co-operative Development visit Israel to study ways and means of establishing a viable co-operative bank. The same year, a joint paper by the Ministry of Finance and Marketing & Co-operatives Development recommending the establishment of the bank is issued.
Two Israeli experts also send their recommendations to the Government to that effect. The Government accepts the recommendations and makes arrangements to have established banks to support it. Consequently, an official from Standard Chartered Mr D G Landells is appointed General Manager to assist with the establishment of the Co-operative Bank of Kenya Limited.
The co-operative movement witnesses a structural change with the formation of the Kenya National Federation of Co-operatives (KNFC) as an apex body to promote the interest of the co-operative movement as a whole.
1945: The 1931 Ordinance is replaced with a new one that allows Africans to participate in and even form their own co-operatives.
1931: The first legislation to specifically govern the registration of co-operatives – Co-operative Societies Ordinance – is enacted. Kenya Co-operative Creameries (KCC) becomes the first co-operative to be registered on 8th February 1931. This is followed shortly by Kenya Farmers Association (KFA) IN 1931, the Kenya Planters Co-operative Union (KPCU) in 1937 and the Horticultural Co-operative Union (HCU) in 1951. However, the 1931 Ordinance did not allow Africans to participate in co-operatives.
