The aggregation model deployed by cooperatives across the country has enhanced the processing and value addition of agricultural products enabling small scale farmers to attain required quantities and better market prices.
Cooperative Alliance of Kenya (CAK) Chief Executive Officer (CEO) Daniel Marube said that small-scale farmers in the dairy, coffee, tea, pyrethrum and sugar sectors have seen their incomes improve over the years as they benefit from the cooperative aggregation model.
Marube highlighted that this year, coffee registered some of the highest prices, with Njuriga and Othaya Coffee Societies in Nyeri paying farmers Sh172 and Sh158 per kilo of cherry, respectively.
“Such payments improve the household incomes, improving the livelihood of the farmers. In dairy farming, Meru Dairy Society is another example of empowerment, recording 195 million litres of milk last year, and paying an average of Sh900 million every month to the farmers after collecting an average of 17 million litres per month. It had a turnover of Sh18.3 billion in 2024. Such are the examples of direct impact to the rural economies and communities,” said Marube.
Speaking on Wednesday during a precursor event for Ushirika Day, which will take place on July 12, Marube disclosed that Meru Dairy has been giving farmers a constant, sustainable income for the last three years of 52 shillings per kilo.
“The dairy pays Sh.50 every month and Sh.2 as a bonus at the end of the year, payable every February. And therefore, the farmers are able to plant their finances based on their daily production,” explained Marube.
Additionally, the cooperative movement has also played a key role in the affordable housing space by providing mortgages and construction funds for their members, where they have financed more houses than banks combined.
“Cooperatives also provide money for members to furnish their houses as well as supporting members who could not afford to get normal loans from the bank to access decent and affordable housing,” he said.
According to Marube, Small and Medium Enterprises (SME’s) get around 80 percent of their starting capital from cooperatives and chamas which offer a cheap and accessible source of financing.
“The movement has supported women and youth who have established small and micro businesses that are creating self-employment for themselves and their peers,” explained Marube.
He disclosed that cooperatives have employed over 750,000 people directly and indirectly in various value chains and they believe that in the next 10 years, the worker cooperatives may be one of the largest employers of the young people in Kenya.
Furthermore, to drive the stability of cooperatives, Marube urged Members of Parliament and the Senate to fast track the Cooperatives Bill, especially now that they are in the International Year of Cooperatives, and give it as a gift to the cooperative movement in recognition of the great work they do in supporting economic growth.
“We are also urging the county governments to give priority to the cooperatives because it touches the lives of every Kenyan in their counties. Our request is that counties provide sufficient budgets to employ qualified cooperative officers who will provide extension services, capacity building, audit and training on good governance and ethics, which will go a long way in championing value chains within the agricultural cooperatives which fall under the mandate of the county governments,” said Marube.
He disclosed that they will be having other pre-Ushirika Day events where, on 3rd and 4th July 2025, they will hold a blood donation drive at the Kenyatta International Convention Centre (KICC).
“We are calling upon Kenyans of goodwill and our members in various cooperatives to come and donate blood. We have partnered with the Kenya National Blood Transfusion Service (KNBTS), Kenyatta National Hospital, and KICC in efforts to support our fellow Kenyans who are in hospitals and require that blood urgently,” said Marube.
He added that on Saturday July 5th, 2025, they will hold celebrations in all the counties except Nairobi County, which will host the Saturday, July 12th, 2025, national celebrations and award-giving ceremony.
“On the 10th, 11th, and 12th of July 2025, we will be having exhibitions at the KICC, and we call on Kenyans to visit and learn more about the cooperative movement and how to attain financially resilient business models,” said Maruibe.
By Joseph Ng’ang’a
