Cooperatives emerge as engine of rural industrialisation in Kenya

From coffee processing and dairy production to maize milling, sugar development and livestock value chains, the county is positioning cooperatives at the heart of investment

NAIROBI, July 6, 2026 — Kericho County in Kenya is redefining the role of cooperative societies, transforming them from traditional marketing organisations into drivers of rural industrialisation, value addition and enterprise development as part of efforts to accelerate the implementation of the Government’s Bottom-Up Economic Transformation Agenda [BETA].

From coffee processing and dairy production to maize milling, sugar development and livestock value chains, the county is positioning cooperatives at the heart of investment. Governor Dr Erick Mutai said they offer the most effective pathway to raising farmers’ incomes, creating employment and stimulating the growth of Micro, Small and Medium Enterprises [MSMEs].

The governor unveiled the county’s cooperative transformation agenda during the International Ushirika Day celebrations at Kericho Primary School, outlining wide-ranging interventions aimed at strengthening farmer-owned institutions as engines of agricultural productivity, agro-processing, manufacturing and inclusive economic growth.

The celebrations brought together cooperative leaders, SACCO officials, farmers, county and national government representatives, development partners and other stakeholders to recognise the sector’s contribution to Kenya’s economic development and social transformation.

This year’s International Ushirika Day was marked under the theme, ‘Cooperatives for a Peaceful World’, highlighting the role of strong and inclusive cooperatives in fostering peaceful societies through job creation, poverty reduction, financial inclusion, stronger local value chains and equitable sharing of development benefits.

By enabling communities to collectively own productive assets and participate in economic decision-making, cooperatives strengthen social cohesion and resilience, laying the foundations for sustainable peace.

Addressing the gathering, Mutai said Kericho’s economic future depended on organised and professionally managed cooperative societies capable of driving production, processing, value addition and marketing while ensuring farmers received better returns for their produce.

“If we want to transform the lives of our people and put more money into the pockets of our farmers, then we must build strong cooperatives. Strong cooperatives create strong farmers, strong businesses and strong communities,” he said.

He noted that the county government had deliberately shifted its agricultural support programmes from individual beneficiaries to cooperative societies to improve governance, strengthen accountability and ensure public investment benefits a wider number of farmers.

According to the governor, the strategy complements the national Bottom-Up Economic Transformation Agenda, which identifies agriculture and MSMEs as key pillars for job creation, food security, value addition and inclusive economic growth.

Although Kericho is internationally recognised as Kenya’s leading tea-producing county, Mutai said the county was deliberately diversifying its agricultural base by investing in coffee, dairy, sugarcane, cereals and livestock through cooperative societies.

Coffee development has become one of the county’s flagship programmes. The county has established new coffee cooperative societies, constructed warehouses and fertiliser stores, supplied coffee pulping equipment, distributed thousands of certified coffee seedlings, extended financial support to struggling cooperatives and deployed agricultural extension officers to train farmers in improved production practices.

He said these investments had enabled coffee cultivation to expand beyond its traditional growing areas into Londiani, Kipkelion, Soin/Sigowet and neighbouring wards, providing thousands of households with an alternative source of income while reducing dependence on tea.

The county is now focusing on increasing productivity, improving coffee quality and securing direct access to international markets through cooperative societies to eliminate exploitative middlemen and increase farmers’ earnings.

The dairy sector is also receiving substantial support through cooperatives. Investments include milk coolers, feed mixers, improved breeding programmes and artificial insemination services. Plans are also underway to establish a farmer-owned milk processing plant to add value locally, improve producer prices and strengthen the county’s dairy value chain.

To enhance food security and expand agro-processing opportunities, the county has completed construction of a maize milling factory at Kedowa. The facility will purchase maize directly from farmers through cooperative societies, process flour locally and supply the Early Childhood Development school feeding programme, while creating opportunities for MSMEs involved in grain aggregation, transport, packaging, retail and logistics.

Dr Mutai said the county would continue working with cooperative societies to improve sugarcane production through farmer training, adoption of improved agronomic practices and promotion of high-yielding cane varieties as part of broader reforms to revitalise the sugar industry.

He added that plans were also underway to establish a modern slaughterhouse to promote value addition, improve meat hygiene standards and strengthen livestock cooperative societies.

The governor said cooperative societies would play a central role in managing selected county-supported agricultural processing facilities, strengthening farmer ownership while improving operational efficiency.

To protect farmers’ investments, the county government also plans to install CCTV surveillance systems at cooperative facilities and work closely with security agencies to curb theft of coffee and other agricultural produce.

Mutai cautioned farmers against selling their produce to illegal coffee buyers operating outside the cooperative system, warning that unlicensed traders undermine organised marketing structures and weaken farmer-owned institutions.

Digital transformation is another key pillar of the county’s agenda. Plans include modernising cooperative operations through digital financial management systems, electronic record-keeping and improved communication platforms to enhance transparency, accountability and service delivery.

The governor said stronger cooperative institutions would accelerate MSME growth by expanding access to affordable credit, mobilising savings and supporting entrepreneurship across agriculture, manufacturing, transport, retail and other productive sectors.

He also urged young people to embrace cooperative enterprises as viable business models capable of creating employment and sustainable livelihoods.

The celebrations showcased Kericho’s vibrant financial cooperative movement, with leaders and members from Ndege Chai SACCO, Simba Chai SACCO, Imarisha SACCO, Tower SACCO, Stima DT SACCO, Setyon SACCO and Kenya Highlands SACCO, alongside dozens of producer cooperatives representing the tea, coffee, dairy, sugar, cereals and livestock value chains. They reaffirmed their commitment to promoting economic growth through affordable financial services and greater financial inclusion.

The event concluded with the presentation of trophies and certificates to outstanding cooperative societies and SACCOs in recognition of excellence in governance, financial management, innovation, membership growth, value addition and service delivery.

As Kenya accelerates implementation of the Bottom-Up Economic Transformation Agenda, Kericho’s cooperative-led model demonstrates how well-organised farmer institutions can drive agricultural transformation, agro-processing, rural industrialisation and MSME development.

By placing cooperatives at the centre of production, value addition, enterprise development and market access, the county is laying the foundations for a more resilient rural economy in which farmers earn more from their produce, local industries flourish and communities share more equitably in the benefits of sustainable and inclusive development.

https://thecooperator.news/m-kopa-targets-ugandan-saccos-with-smartphones-to-advance-financial-inclusion/

Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news

Exit mobile version