Farmers Set to Receive Record Payments from Coop Boss

The cooperative movement in Kenya is a well-established and sustainable business model, driving significant social and economic transformation across the country. According to Daniel Marube, the chief executive of the Cooperative Alliance of Kenya and vice-chairman of Ushirika Council, cooperatives continue to profoundly uplift the lives of Kenyans. Their impact is particularly notable among small-scale farmers in vital sectors such as dairy, coffee, tea, and sugar, where they have played a crucial role in improving incomes and enhancing food production.
Marube emphasized that food production has seen substantial improvements through the aggregation, processing, and value addition initiatives facilitated by cooperatives. This enables small-scale farmers to secure sufficient food for their own consumption while also generating income. Citing the coffee sector as a prime example, Marube highlighted how some societies have achieved record-high payments for their farmers. For instance, the Kenya Coffee Cooperative Exchange reported that Njuriga Coffee Society and Othaya Coffee Society in Nyeri paid farmers Sh172 and Sh158 per kilo of cherry, respectively. Such direct and substantial financial benefits significantly improve household livelihoods, leading to a better quality of life for farming communities, a point underscored by Marube during a briefing ahead of the International Day of Cooperatives.
In the dairy sector, the Meru Dairy Cooperative Society stands out as a testament to the transformative power of cooperatives. It recorded an impressive milk production of 195 million litres and generated an average of Sh900 million monthly for its farmers, collecting approximately 17 million litres per month. Last year alone, the society achieved a remarkable turnover of Sh18.3 billion. Meru Dairy has also been instrumental in maintaining stable and sustainable incomes for its farmers by offering consistent prices over the past three years, demonstrating cooperatives' direct and transformative impact on rural economies and communities.
Beyond agriculture, cooperatives are exerting a growing influence in the housing sector. Marube stressed their leading role in providing affordable and decent housing for Kenyans in both urban and rural areas. A significant portion of mortgages currently held in banks are made possible through deposits from cooperatives and Savings and Credit Cooperative Organizations (SACCOs). The foundational role of cooperatives in providing housing to segments of society often priced out by conventional mortgages was a key factor informing the establishment of the Kenya Mortgage Refinancing Company. Cooperatives are projected to contribute up to 25 percent of the affordable housing units nationwide, underscoring their critical role in addressing the national housing deficit.
Furthermore, cooperatives and SACCOs are vital in financing various demographics, including women, youth, families, and Small and Medium Enterprises (SMEs), by offering access to affordable, low-interest loans. These inclusive financial solutions have been instrumental in creating jobs, enabling individuals to generate sustainable incomes, and lifting many out of extreme poverty. They have significantly contributed to the development of more resilient and self-reliant communities, particularly in rural areas and under-resourced communities, including informal settlements where economic opportunities are often limited.
The cooperative movement has generated over 750,000 direct and indirect jobs across various SACCOs, cooperatives, and corporate and daily value chains. An encouraging new trend is the emergence of youth-led worker cooperatives, consisting of skilled young professionals in sectors such as energy, construction, and engineering. By coming together under cooperative models, these young individuals collectively offer their services, thereby enhancing their bargaining power and sustainability. The Cooperative Alliance of Kenya chief executive urged both national and county governments to recognize and actively support these youth-led worker cooperatives by awarding them contracts and opportunities. This support would enable them to earn income, build sustainable businesses, and contribute meaningfully to the national economy. Marube predicts that within the next decade, worker cooperatives could become one of the largest employers of young people in Kenya.