Kericho county is recasting the role of cooperative societies from traditional marketing organizations into engines of rural industrialization, value addition and enterprise development as a step towards accelerating implementation of the Government’s Bottom-Up Economic Transformation Agenda (BETA).
From coffee processing and dairy production to maize milling, sugar development and livestock value chains, the county is placing cooperatives at the centre of investment, with Governor Dr. Erick Mutai declaring them the surest pathway to increasing farmers’ incomes, creating jobs and stimulating the growth of Micro, Small and Medium Enterprises (MSMEs).
The governor announced the county’s cooperative transformation agenda during the International Ushirika Day celebrations held at Kericho Primary School, where he articulated far-reaching interventions designed to strengthen farmer-owned institutions as drivers of agricultural productivity, agro-processing, manufacturing and inclusive economic growth.
The celebrations brought together cooperative leaders, SACCO officials, farmers, county and national government representatives, development partners and other stakeholders from across the cooperative movement to celebrate the sector’s contribution to Kenya’s economic development and social transformation.
This year’s International Ushirika Day was celebrated under the theme “Cooperatives for a Peaceful World”, recognising that strong and inclusive cooperative enterprises help build peaceful societies by creating economic opportunities, reducing poverty and inequality, expanding financial inclusion, strengthening local value chains and ensuring communities share equitably in the benefits of development.
By empowering people to collectively own productive assets and participate in economic decision-making, cooperatives foster social stability and resilience, which are essential foundations for sustainable peace.
Addressing the gathering, Mutai said the future of Kericho’s economy lies in organized, professionally managed cooperative societies capable of driving production, processing, value addition and marketing while ensuring farmers receive maximum returns from their produce.
“If we want to transform the lives of our people and put more money into the pockets of our farmers, then we must build strong cooperatives. Strong cooperatives create strong farmers, strong businesses and strong communities,” he said.
He noted that the county government had deliberately shifted its agricultural support programmes from individual beneficiaries to cooperative societies in order to strengthen governance, improve accountability and ensure public investments benefit a larger number of farmers.
The governor said the strategy complements the national Bottom-Up Economic Transformation Agenda, which identifies agriculture and MSMEs as the key pillars for creating jobs, improving food security, expanding value addition and driving inclusive economic growth.
Although Kericho has built an international reputation as Kenya’s leading tea-producing county, the governor said the county was intentionally diversifying its agricultural economy by investing in coffee, dairy, sugarcane, cereals and livestock through cooperative societies.
Coffee development has emerged as one of the county’s flagship programmes. The county has established new coffee cooperative societies, constructed coffee warehouses and fertiliser stores; supplied coffee pulping equipment, distributed thousands of certified coffee seedlings and extended financial support to struggling farmer cooperatives, while deploying agricultural extension officers to train farmers on improved production techniques.
Mutai said the investments had enabled coffee farming to expand beyond its traditional zones into Londiani, Kipkelion, Soin/Sigowet and neighbouring wards, creating an alternative source of income for thousands of households while reducing dependence on tea.
He added that the county was now focusing on improving productivity, enhancing coffee quality and securing direct international markets through cooperative societies to eliminate exploitative middlemen and increase farmers’ earnings.
The dairy sector is equally receiving significant support through cooperative societies. The county has invested in milk coolers, feed mixers, improved breeding programmes and artificial insemination services, while plans are underway to establish a farmer-owned milk processing factory to undertake local value addition, improve milk prices and strengthen the county’s dairy value chain.
To enhance food security and create opportunities for agro-processing, the county has completed construction of a maize milling factory at Kedowa.
The facility will purchase maize directly from farmers through cooperative societies, process flour locally and support the school feeding programme for Early Childhood Development learners, while creating opportunities for MSMEs involved in grain aggregation, transport, packaging, retail trade and logistics.
Mutai said the county would continue working with cooperative societies to improve sugarcane production through farmer training, adoption of improved agronomic practices and promotion of high-yielding cane varieties as part of reforms aimed at revitalizing the sugar industry.
He added that plans were also underway to establish a modern slaughterhouse to promote value addition, improve meat hygiene standards and strengthen livestock cooperative societies.
The governor said cooperative societies would play a central role in managing selected county-supported agricultural processing facilities to strengthen farmer ownership and improve operational efficiency.
To safeguard farmers’ investments, the county government also plans to install CCTV surveillance systems in cooperative societies and work closely with security agencies to curb theft of coffee and other agricultural produce.
Mutai cautioned farmers against selling their produce to illegal coffee buyers operating outside the cooperative framework, saying unlicensed traders undermine organized marketing systems and weaken farmer-owned institutions.
Digitization is another pillar of the county’s transformation agenda, with plans to modernize cooperative operations through digital financial management systems, electronic record keeping and improved communication platforms to enhance transparency, accountability and service delivery.
The governor said stronger cooperative institutions would accelerate the growth of MSMEs by expanding access to affordable credit, mobilizing savings and supporting entrepreneurship in agriculture, manufacturing, transport, retail trade and other productive sectors.
He also challenged young people to embrace cooperative enterprises as viable business models capable of creating employment and sustainable livelihoods.
The celebrations also showcased Kericho’s vibrant financial cooperative movement, with leaders and members from Ndege Chai SACCO, Simba Chai SACCO, Imarisha SACCO, Tower SACCO, Stima DT SACCO, Setyon SACCO and Kenya Highlands SACCO, alongside dozens of producer cooperative societies from the tea, coffee, dairy, sugar, cereals and livestock value chains, reaffirming their commitment to supporting economic growth through affordable financial services and financial inclusion.
The event culminated in the presentation of trophies and certificates to outstanding cooperative societies and SACCOs in recognition of excellence in governance, financial management, innovation, membership growth, value addition and service delivery.
As Kenya intensifies implementation of the Bottom-Up Economic Transformation Agenda, Kericho’s cooperative-led model demonstrates how organized farmer institutions can serve as catalysts for agricultural transformation, agro-processing, rural industrialization and MSME development.
By positioning cooperatives at the centre of production, value addition, enterprise development and market access, the county is laying the foundation for a more resilient rural economy, where farmers earn more from their produce, local industries thrive and communities share in the benefits of inclusiveness and sustainability.
by Gilbert Mutai
