Farmers to get record payment, says Coop boss

Cooperative Alliance of Kenya chief executive and the vice-chairman of Ushirika Council Daniel Marube. [File, Standard]

Cooperatives are among the most well-known sustainable business models, driving social and economic transformation across the country.

Cooperative Alliance of Kenya chief executive and the vice-chairman of Ushirika Council Daniel Marube said the cooperative movement continues to uplift the lives of Kenyans, especially small-scale farmers in sectors such as dairy, coffee, tea and sugar, by improving incomes.

He said food production has improved through aggregation, processing and value addition, enabling small farmers to get enough for consumption and earn income.

Citing the coffee sector, Marube said some societies have achieved record-high payments to farmers. 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 incomes improve household livelihoods, enabling better quality of life for farming communities," he said during a briefing to mark the International Day of Cooperatives that will be celebrated on July 25, 2025.

In the dairy sector, Marube said Meru Dairy Cooperative Society recorded milk production of 195 million litres and farmers an average of Sh900 million monthly, collecting an average of 17 million litres per month and achieving a turnover of Sh18.3 billion last year.

"These are clear examples of how cooperatives have a direct and transformative impact on rural economies and communities," he said.

In dairy farming, Marube revealed that Meru Dairy has also maintained a stable and sustainable income for farmers by offering consistent prices over the past three years.

Beyond agriculture, he cited the cooperative growing influence in housing sector.

He emphasized that cooperatives continue to play a leading role in providing affordable and decent housing to its people in both urban and rural areas. Many of the mortgages held in banks today have been made possible through deposits from cooperatives and Savings and Credit Cooperative Organizations (SACCOs).

Marube explained that, Kenya Mortgage Refinancing Company was informed by the role that Cooperatives play in providing houses to segments of the society that are priced out by conventional mortgages.

"Cooperatives are expected to contribute up to 25 per cent of the affordable housing units in the country, highlighting their critical role in addressing the national housing deficit," Marube said.

He emphasized the key role cooperatives and Saccos play in financing women, youths, families and Small and Medium Enterprises (SMEs), by providing access to affordable, low-interest loans.

These financial services have not only created jobs but also enabled individuals to generate sustainable incomes.

"By offering inclusive financial solutions, cooperatives have helped lift many out of extreme poverty and contributed to more resilient and self-reliant communities, especially in rural areas and under-resourced communities, including informal settlements, where economic opportunities are often limited," he explained.

Marube revealed that cooperatives have created more than 750,000 direct and indirect jobs across various Saccos, cooperatives, and corporate and daily value chains. Encouragingly, a new wave is emerging, where young people are beginning to form worker cooperatives.

"These cooperatives consist of skilled young professionals, both men and women, in sectors such as energy, construction, and engineering. By coming together under cooperative models, they offer their services collectively, enhancing their bargaining power and sustainability," he said

The Cooperative Alliance of Kenya chief executive urged the national and county governments to recognise and support these youth-led worker cooperatives by awarding them contracts and opportunities to deliver services. This will enable them to earn income, build businesses, and contribute meaningfully to the economy.

He predicted that in the next 10 years, the worker cooperatives may be one of the largest employers of young people in Kenya.