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 Form 2 Business Studies: Forms of business units lessons

Reasons why Consumer co-operatives are not popular in Kenya.

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Answer Text:
Reasons why Consumer co-operatives are not popular in Kenya.
(i) They face stiff competition from large scale retailers such as supermarkets and multiple shops who buy goods directly from the producers and sell-them to
consumers at low prices.
(ii) Cannot offer to employ qualified staff.
(iii) Majority of their members have low income, so raising off capital is a problem.
(iv) Kenya, being an agricultural country, produces enough subsistence goods for itself. It therefore does not require consumer co-operatives.
(v) Reluctance of non-members to buy from the shops lowers the turn-over.
(vi) Mismanagement of the shops is rampant


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