Debt-ridden dairy company on the brink of collapse
One of the county's oldest dairy cooperative societies is on the brink of collapse due to crippling debts.
Gakindu Dairy Farmers Cooperative Society on Friday held a special general meeting, where members were informed of the company's dire financial state.
A status report revealed that the society’s membership, which once stood at more than 17,000 in the 1970s, had dropped drastically to 146 by this month.
“Milk production dropped to 15,000kg from 71,000kg in a span of six months while society staff and members did not get their dues for a period of six months,” the report noted, adding that farmers were owed nearly Sh5 million for milk deliveries.
The management blamed its predicament on stiff competition from other dairy societies in Mukurweini, as well as low milk production from members.
But the agitated farmers called on the county government to help them eject the officials.
Trade, Tourism and Cooperatives Executive Diana Kendi, who attended the meeting, said the county government would help the society get back to profitability and asked farmers not to abandon the cooperative.
“You, as farmers, need to make a commitment that to save Gakindu pay its debts and recover, you do not leave the society as its members,” said Ms Kendi.
The Cooperatives Executive also instructed the cooperatives director to identify a date to hold fresh elections for the society's officials.
Register to advertise your products & services on our classifieds website Digger.co.ke and enjoy one month subscription free of charge and 3 free ads on the Standard newspaper.
Gakindu Dairy Farmers Cooperative SocietyTradeTourism and Cooperatives