Demystifying the Sixth Co-operative Principle: Interplay between Framework and Digital Era on Growth in Deposit Taking Co-operatives in Kenya

Abstract

Co-operatives are indispensable in economic development worldwide. The World Bank, International Co-operative Alliance and International Labor Organization acknowledge co-operatives role in fighting poverty and promoting equity. The guidelines through which co-operatives put their ethics, values and beliefs into practice are embodied in co-operative principles. However, although the sixth principle emphasizes co-operation among co-operatives at local, national, regional and international levels, it is yet to be
practiced adequately due to limited understanding. This paper seeks to demystify the sixth co-operative principle by examining the effect of the interplay between the co-operative framework and digital era on the growth of Deposit Taking co-operatives in Kenya. It is anchored on co-operative socialistic school of thought by Marxist Lerin. The theory states that co-operatives are social enterprises aimed at transforming societies by removing the ills of capitalism through co-operative ethics of self-help and solidarity. Quantitative secondary data from SACCOs Regulatory Authority (SASRA) data base in 175 Deposit Taking co-operatives using cross-sectional research design and census sampling technique is used. Data were analyzed with the aid of binary logistic regression. The findings indicate that the interplay between co-operative framework and digital era accelerates co-operation among co-operatives (p values all <0.05). In addition, it improves service to members and increases co-indicators that lead to increase in co-operation among co-operatives, hence enhancing service to members and co- , were computer hardware, software and skills. Other co-operative framework indicators identified were co-operative identity, structure, policy and environment. The study recommends to co-operative managers and board to embrace co-operative framework and digital era to accelerate co-operation among cooperatives and provide better services to member leading to co-operative movement's growth.