The Minister of Trade and Industry, Prudence Sebahizi, has said a specialised court chamber is needed to handle disputes involving cooperatives. “There are investors who delay or fail to pay for the products they obtain from cooperatives, leading to legal disputes. This remains a significant challenge, and there are numerous cooperative-related cases in the courts,” Sebahizi told Members of Parliament on April 1. ALSO READ: Trade minister outlines solutions for cooperatives market shortages Sebahizi stressed the importance of establishing a dedicated court similar to the commercial court. “We need a specialised court to deal with cases of cooperatives due to their high volume. Many cooperatives are managed by people with limited legal knowledge, which often makes them lose cases, not because they are in the wrong, but because they lack the skills to present their case effectively in court,” he explained. ALSO READ: Cooperatives Agency pushes for specialised lawyers to bolster justice in cooperative offenses According to Rwanda Cooperatives Agency, there are more than 5,600 registered cooperatives with hundreds of thousands of members, that operate in different sectors, such as agriculture, services, commerce, handicrafts, However, MP Valens Muhakwa argued that establishing a special court might not be the most effective solution to solve disputes involving cooperatives. “I do not believe that setting up new courts is the best approach. Take, for example, the IAKIB Cooperative in Gicumbi, which has debts exceeding Rwf1 billion. Taking the matter to court will not alter the amount owed; instead, additional legal fees will be incurred, further diminishing the financial benefits for its members.” He argued the use of other resolution mechanisms could help recover the money more swiftly. ALSO READ: Cooperatives agency moves to strengthen efficiency, warns against fraud In response, Minister Sebahizi clarified that the proposal does not disregard other means of settling disputes outside the court system. “We have recommended a specialised court for cooperative cases because some of these cases take two to three years to be resolved, as they are not prioritised,” he said. “When a case remains in court for years, [MPs] may follow up on it multiple times and still find it unresolved. Just as commercial cases are handled separately from other legal matters in the country, having a dedicated court for cooperatives would ensure timely resolution of disputes,” Sebahizi added.
