CoK, 2010 brought about fundamental changes in the management of public affairs. The CoK 2010 established two levels of government namely; the national and the 47 county governments. The functions assigned to the county governments under Fourth Schedule included co-operative development and regulation that was unbundled by the Transition Authority through Legal Notice No. 137 of 9th August 2013. One of the objects of devolution is to promote social and economic development and provision of easily accessible services throughout Kenya (CoK, 2010 Article 174). In doing so all actors will be guided by the principles and as espoused in Article 10 of the Constitution.

Cognisant of the devolved system of governance, the SDC has a policy which lays ground for the review of the legal and regulatory framework to facilitate the growth and development of co-operatives. It is acknowledged that co-operatives are private organizations that play an important role in public mobilisation to stimulate economic growth. Therefore, the role of the national and county governments remains facilitative in nature.