DISADVANTAGES OF CONSUMER COOPERATIVES

DISADVANTAGES OF CONSUMER COOPERATIVES

Consumer Co-operatives are formed by a group of consumers to buy goods on wholesome and sell them to the members at existing market prices.




Consumer co-operatives are not popular in Kenya because of the following

  • 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
  • Cannot offer to employ qualified staff
  • Majority of their members have low income, so raising off capital is a problem
  • Kenya, being an agricultural country, produces enough subsistence goods for itself. It therefore does not  require consumer co-operatives




  • Reluctance of non-members to buy from the shops lowers the turn-over
  • Mismanagement of the shops is rampant

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