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Thursday 24 May 2012

Co-operatives Reclaim Key Role in Rural Development

The co-operative movement has great potential in changing the lives of rural people. In fact, it is already doing so. The government has introduced many positive policies whose results are becoming obvious.

 

It is hoped that this endeavour coupled with an effective public relations policy will improve the perception of the sector and inspire confidence so that it can play its rightful role in improving the lives of Kenyans, especially farmers.

 

In many sectors, this is already happening, with the result that farmers are getting better returns for their sweat. The net effect of this is, of course, to position Kenya as an investor destination of choice. 

 

 

Governance has continued to improve and more men and women of integrity are being elected to co-operative management committees and as qualified people are employed. In fact, it has never been so good since the good old days.

 

The 2004 Co-operatives Act made it hard for criminals to continue serving in committees or boards. The Co-operative Tribunal has speeded up justice in the sector. Fair elections are now held regularly.

 

Members are expressing themselves freely through the AGMs and FM radio stations and, the government and management committees are taking these views seriously. The co-operative officers are now, slowly but surely, getting a better deal from their employers.

 

During the last few years the Kenya Cooperative Creameries (KCC) was restructured and new KCC created as a parastatal. The immediate effect was to raise milk prices from about Sh6 to Sh25 per litre. Farmers now have cash in their pockets to meet their daily needs.

 

This trend will continue and more dairy cooperatives are cropping up in the farming landscape. Value addition will continue as we see more dairy co-operatives coming up.

 

Kenyans remember, as they say, the days when “coffee was coffee”. Along the way the sector collapsed due to poor government policies, corruption and mismanagement. The farmers became poor as payment became less and less both in real terms and in predictability. Coffee cartels appeared and squeezed the farmer’s even further.

 

The Kenya Planters Co-Operative Union (KPCU), for all practical purposes, died in all but name.

 

In the recent past, farmers, with the encouragement of the Co-operatives Ministry, have created the Co-operative Coffee Exporters Limited (KCCE). During the first season of operation, KCCE faced many problems. Slowly but surely, it is making progress as the aim was to ensure farmers got better returns.

Success Story

In the Mount Kenya region, coffee farmers are paid up to Sh67 per kilogramme. By controlling only 15 per cent of exportable coffee, the KCCE initiative has forced even the competition to double or triple payments to farmers.

 

This is a major contribution by the cooperative movement. With this success story, it is now easy for farmers to trust us to restructure KPCU for their own benefit. A lean KPCU, but a more efficient one, will become another cooperative success story.

 

The coffee debt waivers that are currently being working on will bring financial stability to this sector. The previous write-offs did not cover the loans that coffee unions had given to their farmers. The waivers will now clear these loans, and the farmers will concentrate on raising the quality and quantity of coffee. This will bring wealth to the farmers and by extension, the country. 

 

Sugar is another sector that has, over the year, left the farmers in Nyanza and Western Kenya almost in dire straits. Corruption, mismanagement, wrong government policies have all made their contribution.

 

 

That is why the co-operative sector welcomes privatisation of the sugar mills by the the government. The co-operative movement hopes to play a positive role in the future success story of Nzoia, Muhoroni, Chemilil and Sony sugar companies.

 

The co-operative movement in other countries plays a key role in agricultural extension services, horticulture and irrigation. Kenya expects to follow suit as well in the coming years.

 

The co-operative movement has picked up the pieces and momentum to make its rightful contribution to the realisation of Vision 2030 - the government’s blueprint for transforming Kenya into a Middle Income Country.