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Give the advantages and disadvantages of Cooperative Societies in Kenya

      

Give the advantages and disadvantages of Cooperative Societies in Kenya

  

Answers


ANNETTE
ADVANTAGES OF COOPERATIVE SOCIETY IN KENYA

• They give loans to members at a low interest rate.
• Since they have no middlemen, they eliminate the exploitation of the middlemen.
• The membership to cooperative societies is open and voluntary.
• Their members have equal chances of being elected to the management committee
• They are able to provide services to members at a minimum cost because of the economy of scale.
• The interests of the members are served more effectively through co ownership because the properties of the cooperatives are owned collectively.
• They have helped members to increase their incomes and consequently improve their standards of living.
• They get the government assistance in case of financial and managerial problems.
• Their members have limited liabilities.


DISADVANTAGES OF COOPERATIVE SOCIETIES IN KENYA

It entails longer decision making process.
It requires members participation for its success.
Record keeping is extensively necessary in cooperatives societies.
Problem in management due to lack of managerial talent and skills has they are unable to employ professionals due their limited capital.
Cooperatives are highly dependent to the government for financial support in terms of grants, loans, subsidies and mortgages.
neptune answered the question on November 22, 2017 at 15:33


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