Commissioner of Co-operatives David Obonyo Obonyo has called for merge of coffee co-operative societies with a production of below 500,000kg with stronger ones to save on farmers earnings.
He said lower volumes of coffee raise the overhead costs for an individual co-operative, eating into farmers’ earnings.
The challenge is especially rife in Western and Rift Valley regions, resulting in many co-operatives that struggle to stay afloat as farmers earn minimal returns.
“In Kirinyaga, however, one sacco is producing more than one million kilogrammes. Only one sacco is struggling and we’re working with the county to support it to improve its production,” Obonyo said.
The county is the largest coffee producer in the country, with 8.9 million kilogrammes sold last year at Ksh5 billion. This year, some local co-operatives have paid at Ksh150 per kilogramme, the highest pay recorded in years.
The commissioner announced that a review is being undertaken on all saccos to ensure those underperforming are merged with stronger ones.
“In the past few months, we have been unable to register new saccos because of the review and will release the report once its ready.”’
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He said the ministry is working with county governments and Sacco Societies Regulatory Authority (Sasra) to enhance inspections and ensure saccos are well run.
Obonyo spoke during the opening of a new Unaitas Sacco branch in Kagio, Kirinyaga County, on Friday.
CEO Martin Muhoho said the county, one of the richest in the Mt Kenya region agriculturally, is filled with innovators willing to take risks to advance their farming and business activities.
“This is our 34th sacco and we plan to raise this number to 60 in the next five years,” Muhoho said.
He said the 32–year–old sacco has been recording accelerated growth in the recent past, with its assets base growing by more than Ksh2 billion annually.
The sacco has an assets base of Ksh30 billion, a loan book of over Ksh21 billion and deposits worth Ksh16 billion.
“In five years, we plan to raise the asset base up to Sh60 billion. Our mission is to transform lives through financial empowerment,” Muhoho said.
By Our Reporter
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