Robust reforms have revitalized co-operative sector, Uhuru says

President Uhuru Kenyatta on Saturday attributed the rapid growth of the cooperative sector to the policy reforms the Government has implemented since 2013.

Uhuru said the reforms have helped the sector to play its rightful role in the achievement of the Big 4 Agenda pillars of manufacturing, food security and affordable housing.

"In manufacturing, my administration has prioritized reforms for the revitalization of various sub-sectors where cooperatives are involved in areas such as agro-processing and value addition in coffee, cotton and dairy to name but a few," he said.

The President spoke at the KICC where he led the country in celebrating the 100th International Co-operatives Day.

He cited the revival of the Kenya Planters Cooperative Union as one of the fruits of the reforms that have directly benefitted coffee farmers.

"As part of this revitalization programme, my Administration incorporated the new Kenya Planters’ Cooperative Union Ltd (New KPCU) in 2019 after the liquidation of the old KPCU, which was bedevilled by a myriad of challenges."

Uhuru further said through the reforms the New KPCU was able to establish a Cherry Revolving Fund of Sh3 billion, institute a farm inputs subsidy programme of Sh1 billion as well as refurbish coffee drying tables.

He added that the new entity has also been able to provide sustainable solutions to thousands of coffee farmers through milling and marketing services.

The New KPCU has provided milling and marketing services to 236 cooperative societies and 92 coffee estates.

President Uhuru said the reforms also helped to stabilize the dairy sub-sector through the modernization and expansion of the New KCC  factories.

He said they have led to steady growth in the number of dairy co-operatives.

"Moreover, with its increased processing capacity, the New KCC has been enabled to take up excess milk from farmers, thereby averting losses at farm level and providing a much-needed ready market for their produce," Uhuru said.

On rice farming, Uhuru said the Government-led reforms saw the revival of the Kenya National Trading Corporation (KNTC), enabling the sector to increase production.

It also ensures farmers have access to markets for their produce at competitive prices.

Other areas that benefitted from the cooperative sector reforms include the cotton industry with implementations on recommendations of a task force geared towards revitalizing old and obsolete cotton cooperative ginneries as well as building new ones.

Uhuru added that the implementation of the Sacco Societies (Non-Deposit Taking Sacco Business) Regulations 2020, which commenced in January 2021, has helped to double the number of SACCOs under prudential regulation of Sacco Societies Regulatory Authority (SASRA) to 360.

"I note with appreciation that over the period 2014 to 2021, the SACCO industry has registered remarkable growth. In terms of membership, the number has risen from 3 million in 2014 to 5.5 million in 2021, signifying the growth."