Abstract:
Consumers in Kenya continue to face exploitation because of the
privatization of most of the organizations that supply
goods. This is due to failure to form a performing and well managed consumer cooperative in Kenya. The main aim
of the study was to assess the factors influencing the need to establish performing consu
mer cooperatives in Nairobi,
Kenya. The researcher used a descriptive survey research design, which was considered appropriate in this kind of
study because it targeted a large population of members of COMOCO SACCO. This target population included both
ord
inary and employee’ members. The researcher targeted the members of COMOCO SACCO because they already
have the working knowledge of co
-
operatives and are consumers who buy goods from small scale shops and mini
-
supermarkets. The researcher used a questionna
ire as a key tool for data collection. The questionnaire was pretested
through a pilot study of 7 respondents. The pilot study indicated that the instrument was valid and reliable for the
purpose of this study. Purposive sampling technique was used to sele
ct a sample of 10 employees as respondents
which was desirable for the purpose of the study. Meanwhile, a systematic sampling technique was applied to select
60 respondents from ordinary members. The total sample size therefore comprised 70 respondents, ou
t of which, 66
successfully completed the survey questionnaire. Data analysis was done using descriptive statistics whereby data was presented in form of percentages, tables, graphs and pie charts. The software used to simplify the data analysis
procedur
e was MS excel. The findings from the study revealed that, the level of awareness of the potentials of
consumer cooperatives is low; and that the consumer cooperatives are profitable to invest in, but only if well managed.
Also, favorable socio
-
economic c
onditions that can influence people to promote consumer cooperatives were
identified as exploitation by readily established retail stores and enhancement of consumers’ quality of life. The prime
strategies that can be used to promote a performing consumer
cooperative were identified as competitive pricing and
effective customer care. The researcher concluded that a need exists to establish viable consumer cooperatives in
Nairobi Kenya and therefore substantial efforts should be directed towards the promotio
n of this type of co
-
operative.
The researcher recommended the need for an extensive public education programme to inform people what the
consumer co
-
operatives entail and how they can benefit from them
