Nairobi: 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.
According to Kenya News Agency, Cooperative Alliance of Kenya (CAK) Chief Executive Officer (CEO) Daniel Marube stated 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.
Marube noted that such payments improve the household incomes and livelihoods of the farmers. In dairy farming, the Meru Dairy Society has empowered farmers, recording 195 million liters of milk last year and paying an average of Sh900 million every month to the farmers after collecting an average of 17 million liters per month. It reported a turnover of Sh18.3 billion in 2024, showcasing the direct impact on rural economies and communities.
Speaking at a precursor event for Ushirika Day, Marube disclosed that Meru Dairy has been providing farmers with 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, which is paid every February, allowing farmers to plan their finances based on their daily production.
Additionally, the cooperative movement has played a key role in the affordable housing sector by providing mortgages and construction funds for their members, financing more houses than banks combined. Cooperatives also offer funds for members to furnish their homes and support those who cannot access traditional bank loans to secure decent and affordable housing.
According to Marube, Small and Medium Enterprises (SMEs) receive about 80 percent of their starting capital from cooperatives and chamas, offering a cheap and accessible source of financing. The movement has supported women and youth who have established small and micro businesses, creating self-employment opportunities for themselves and their peers.
Marube disclosed that cooperatives have employed over 750,000 people directly and indirectly in various value chains. He expressed confidence that in the next decade, worker cooperatives could become one of the largest employers of young people in Kenya.
To ensure the stability of cooperatives, Marube urged Members of Parliament and the Senate to fast-track the Cooperatives Bill, especially in the International Year of Cooperatives, as a gift to the cooperative movement in recognition of their contribution to economic growth. He also called on county governments to prioritize cooperatives by providing sufficient budgets to employ qualified cooperative officers who will offer extension services, capacity building, audit, and training on good governance and ethics.
Marube announced plans for other pre-Ushirika Day events, including a blood donation drive at the Kenyatta International Convention Centre (KICC) on July 3rd and 4th, 2025. The drive is in partnership with the Kenya National Blood Transfusion Service (KNBTS), Kenyatta National Hospital, and KICC to support Kenyans in need of blood.
He added that on Saturday, July 5th, 2025, celebrations will be held in all counties except Nairobi County, which will host the national celebrations and award-giving ceremony on Saturday, July 12th, 2025. Exhibitions will take place at the KICC from July 10th to 12th, inviting Kenyans to learn about the cooperative movement and how to develop financially resilient business models.