The cooperative aggregation model is playing a pivotal role in transforming Kenya’s agricultural sector by enhancing value addition and broadening market access for smallholder farmers. Cooperatives have emerged as critical vehicles in improving farmer earnings across key sectors such as dairy, coffee, tea, sugarcane, and pyrethrum.
In the coffee sector, for instance, cooperative societies have enabled farmers to benefit from record-high prices. Some of the top-performing cooperatives have paid farmers up to Sh172 per kilo of cherry, setting benchmarks for value delivery and financial empowerment.
One of the standout examples of cooperative success is the Meru Dairy Society, which collected an impressive 195 million litres of milk in the past year. The society paid farmers approximately Sh900 million monthly, demonstrating the power of aggregation in building robust rural economies. With an annual turnover of Sh18.3 billion in 2024, Meru Dairy exemplifies how cooperatives can create stability and predictability for farmers. Members receive a steady monthly price of Sh50 per litre, along with a Sh2 bonus paid every February, enabling them to plan their finances more effectively.
The cooperative movement’s influence extends beyond agriculture into sectors such as housing and enterprise development. Cooperatives are outpacing traditional banks in providing mortgage solutions to members, offering accessible financing for house construction and furnishing. This inclusive financing model allows even those excluded from conventional banking systems to access decent and affordable housing.
Moreover, cooperatives have become a vital funding source for Small and Medium Enterprises (SMEs). Nearly 80% of startup capital for SMEs is drawn from cooperatives and informal savings groups like chamas. This model has proven especially beneficial for women and youth, enabling them to establish small businesses, support livelihoods, and generate employment within their communities.
The broader impact of the cooperative sector is evident in job creation, with over 750,000 direct and indirect jobs generated across multiple value chains. Looking ahead, worker cooperatives are projected to become one of the country’s largest employers of youth over the next decade.
To sustain and expand this progress, there is a strong call for the swift enactment of the Cooperatives Bill, which would enhance regulatory support and governance. County governments are also being urged to invest more in cooperative development through recruitment of qualified officers and provision of essential services such as training, auditing, and capacity building.
As part of the annual Ushirika Day celebrations, a blood donation drive is scheduled at the Kenyatta International Convention Centre (KICC), followed by nationwide county events on July 5 and a national exhibition and awards ceremony in Nairobi from July 10–12, aimed at promoting awareness and strengthening Kenya’s cooperative movement.
