E. African Cooperatives Bill to open up regional markets

Mr Mike Sebalu, the Ugandan representative, who introduced the Bill during the Eala’s plenary session early last year. File photo

What you need to know:

The legislation is also expected to facilitate cross-border trade.

KAMPALA- The East African Legislative Assembly (Eala) has passed the East African Community Cooperative Societies Bill 2014, giving regional farmers something to smile about.
Uganda National Farmers Federation’s lobby and advocacy manager Caleb Gumisiriza, said: “The passing of this Bill by Eala was a great milestone to farmers organised through cooperatives across the region as it will ease market access.”

Once assented to by the regional heads of state, the Bill, which will have turned into law, is expected to coordinate and provide market information to farmers and facilitate trade across the region.
Moved by Uganda’s Mike Sebalu, the Bill received overwhelming support in the House last week when the report of the public hearings held in the partner states was approved.

Other stakeholders, including the East African Farmers Federation (EAFF), have come out in support of the Bill.

EAFF president Phillip Kiriro expressed his delight at the passing of the Bill. “Today is definitely a good day for the cooperative movement and this is very exciting news. I laud the legislators for enacting the key Bill”, he said on phone from Kenya’s capital, Nairobi.

The Federation’s executive director, Mr Steve Muchiri, called the passaging of the Bill historic. “The long wait has finally paid off,” he said.

What the Bill is about
The Bill is based on the understanding that each partner state shall undertake to encourage the efficient use of resources and to promote the development of private sector organisations which are engaged in all types of economic activities, such as the chambers of commerce and industry, confederations and associations of industry and agriculture.

Clause 3 of the Bill lays down objectives of cooperative societies which include: solving problems collectively, coordinating knowledge and skills and promoting self- reliance.

The rest of the aspects contained in the Bill deal with the formation, rights and duties of members and privileges. Other areas include the assets and liabilities, settlement of disputes and winding up/dissolution of societies.

How the Bill grew
The East African Community (EAC) Cooperative Societies Bill was introduced by Uganda’s Mike Sebalu during Eala’s plenary session in Kampala, on January 22 2014.
It sailed through the third reading after members debated and made amendments to a number of clauses to reflect relevance and consistency.

The Bill will now move to the next stage – which is that of assent by the regional heads of state in line with Article 63 of the EAC Treaty.