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CDP-Kenya-SSNA-Baseline-Report Social System Network Analysis (SSNA) Baseline Report A Study to Strengthen the Enabling Environment for Cooperatives in Six Counties in Kenya This report was produced by Root Change for the Cooperative Development Program (CDP), an initiative sponsored by USAID’s Office of Local Sustainability March 2020 CDP Kenya | SSNA Baseline Report Table of Contents Key Terms and Acronyms 3 Introduction 4 I. Executive Summary 4 II. Study Overview 9 III. Study Methods 22 IV. Overview of Data Collected 30 V. Key Findings 34 VI. Recommendations 38 VII. Concluding Remarks 46 Annex 1: SSNA Baseline Findings for Full Network 46 Findings for Ecosystem Connectivity 46 Findings for Cooperative Market Diversity 50 Findings for Cooperation Among Cooperatives 58 Findings for Inclusion of Marginalized Groups 66 Annex 2: SSNA Baseline Findings by County 69 Meru 69 Nairobi 75 Kirinyaga 84 Laikipia 90 Kisumu 96 Nandi 103 Annex 3: How Pando Works 110 Annex 4: Key Activities Conducted 113 Annex 5: Collaboration Area Questions 115 Annex 6: Breakdown of Collaboration Areas by County 117 Annex 7: Analysis of Key Cooperative System Actors 119 2 CDP Kenya | SSNA Baseline Report Key Terms and Acronyms BDA: Business Development Account CAK: Cooperative Alliance of Kenya CDP: USAID’s Cooperative Development Program CDP Partners: The three organizations that are implementing CDP (Global Communities, NCBA CLUSA and WOCCU) CDP Kenya Team: Each of the three CDP Partners has local staff who were collectively involved in the SSNA. This term refers to all three organizations’ local staff. CIC: Cooperative Insurance Company Cooperative: A business or company that is both owned and controlled by its members CUK: Cooperative University of Kenya GC: Global Communities INGO: International Non-governmental Organization KCCDB: Kisumu County Cooperative Development Board KUSCCO: Kenya Union of Savings and Credit Cooperatives NACHU: National Cooperative Housing Union NACOs: National Cooperative Organizations NCBA CLUSA: National Cooperative Business Association CLUSA International NGO: Non-governmental Organization NKCC: New Kenya Co-operative Creameries Ltd. Pando: Root Change’s proprietary technology platform used to help organizations visualize, learn from, and engage with the systems where they work (https://mypando.org) SACCO: Savings and Credit Cooperative Organization; A financial cooperative SASRA: SACCO Societies Regulatory Authority SME: Small to Medium Size Enterprise SSNA: Social Systems Network Analysis Ushirika Hub: The name of the map on Pando used to collect the SSNA data. USAID: United States Agency for International Development WOCCU: World Council of Credit Unions 3 CDP Kenya | SSNA Baseline Report Introduction Root Change partnered with the CDP Partners to conduct a Social System Network Analysis (SSNA) baseline of the cooperative ecosystem in six counties in Kenya from September 2019 to February 2020. This final report is the culmination of the analysis, findings, and recommendations. Here is a guide to the report to help you select sections of interest. I. Executive Summary gives a brief summary of this study, including a summary of the key findings and recommendations. II. Study Overview provides background on the cooperative ecosystem in Kenya, the Cooperative Development Program (CDP) and its Partners, the purpose of the SSNA baseline, why network analysis was the method of choice, unique value of the Pando platform, the learning questions the guide the study design, and an overview of the cooperative ecosystem framework adapted to guide the analysis of SSNA results. III. Study Methods includes an overview of the methods used to map stakeholder relationships and capture stakeholder feedback during in-person workshops. It also outlines methods used to analyze the data for this report. IV. Overview of Data Collected is a brief summary of the relationship data collected using Root Change’s online network analysis platform, Pando. V. Key Findings and VI. Recommendations answer each of the seven learning questions from this study. The first four questions are the findings, and the last three are the recommendations. Ushirika Hub lessons learned and recommendations for continued use are included in the Recommendations section. Annex 1: SSNA Baseline Findings for Full Network details the findings of the full network, highlighting patterns and similarities found across all 6 counties. This analysis is guided by the dimensions of the cooperative ecosystem framework described in the study overview. Annex 2: SSNA Baseline Findings by County includes detailed findings for each of the 6 target counties. This analysis again is guided by the dimensions of the cooperative ecosystem framework described in the study overview. Annex 3: How Pando Works explains Root Change’s online network analysis platform. Annex 4: Key Activities Conducted gives additional information on the design, data collection, and validation activities of this study. Annex 5: Collaboration Area Questions lists the relationship survey questions on Pando. Annex 6: Breakdown of Collaboration Areas by County is a table with percentages of relationships reported in each collaboration area. Annex 7: Analysis of Key Cooperative System Actors includes detailed findings for key actors, such as higher-tier cooperatives and specialized service providers. I. Executive Summary The USAID-funded Cooperative Development Program (CDP) in Kenya is a joint initiative among three individual projects launched in 2018 by Global Communities, the World Council of Credit Unions (WOCCU), and the National Cooperative Business Association CLUSA International (NCBA CLUSA). Together, these 4 CDP Kenya | SSNA Baseline Report three organizations (known as the CDP Partners) and their complementary projects are working to strengthen the enabling environment that serves cooperatives and their members in Kenya by strengthening cooperative support institutions, improving business development services, providing capacity building services directly to cooperatives, and facilitating learning among cooperatives. The CDP Partners have partnered with Root Change to conduct a social systems network analysis (SSNA) baseline study of the cooperative ecosystem in 6 target counties where CDP Partners are implementing projects. The primary goals of the SSNA baseline were to 1) better understand the links among emerging and established actors in the Kenyan cooperative sector to help the CDOs identify potential and existing entry points for supporting cooperative networks and building capacity of cooperative support organizations, and 2) determine the most effective ways for the three CDOs to complement each other’s CDP activities. This report, more specifically, aims to summarize the links among emerging and established actors in the cooperative ecosystem, identify key actors and areas of collaboration to inform CDP Partners’ programming, and give recommendations for aligning collective strategies over the next 5 years. Summary of Study Purpose Together, we developed a set of learning questions to inform the data collection, analysis, and reporting for this SSNA baseline report. The seven questions explore the networks and perspectives of who is working in the cooperative ecosystem, examining the perspectives of cooperative businesses (including SACCOs1) and support organizations (i.e., government, businesses, financial institutions, higher-tier cooperatives,2 INGOs) who offer critical services to cooperatives/SACCOs. The learning questions also explore obstacles both groups face in seeking services and providing services, and actions or solutions to address these obstacles. Data analysis and reporting is also organized around a framework for understanding the cooperative ecosystem and the enabling environment conditions needed to ensure cooperatives can grow and thrive. This framework was adapted from USAID’s market systems resilience framework3, and Project Equity and the Democracy at Work Institute’s framework on key elements that support and sustain cooperative 1 SACCOs in Kenya refer to Savings and Credit Cooperative Organizations, which are financial cooperatives, sometimes referred to as Credit Unions. We have distinguished them in this study as the CDP Partners are interested in understanding cooperatives as a whole, and specific roles SACCOs or financial cooperatives play within the cooperative ecosystem. 2 Higher-tier cooperatives are organizations that support cooperative movement in a country, they include unions, federations and confederations of cooperative businesses. 3 Jeanne Downing et al., “Market Systems Resilience: A Framework for Measurement,” October 4, 2019, https://www.usaid.gov/documents/1866/market-systems-resilience-framework-measurement. 5 CDP Kenya | SSNA Baseline Report growth4. Root change used the cooperative ecosystem framework to structure the analysis, findings, and recommendations. Summary of Methods and Data Collection For this SSNA baseline report, we used mixed-methods data collection and analysis, which draws from relationship data surveys as well as stakeholder feedback and dialogue. The data was collected in all six counties using the same approach: ● Ushirika Hub Launch Events: Relationship data surveys were collected using Root Change’s online network analysis platform, called Pando.5 The CDP Partners launched Ushirika Hub6, a network map on Pando, across the six counties through in-person workshops with key stakeholders. Participants included cooperatives, SACCOs, county government, input suppliers,
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