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SACCO INDUSTRY WATCH
SURVEY REVEALS CO-OPS SIGNIFICANT
INCREASE
By Nicholas Waitathu The Co-operatives in the coffee sub
sector are likely to increase in the
future as government and private sector
fast track an initiative to revive dormant
Co-operatives with a view to increasing
coffee production in the country.
Coffee subsector implementation
committee chairman Joseph Kieyah
says new reforms –promotion of good
agricultural practices being fast tracked
will help in activating coffee farming.
In this case he observes that dormant
coffee societies will be revived as
production increases.
In an interview recently Kieyah
confirmed, evidence from primary
and secondary data reveals
underperformance of societies due to
internal and external factors.
The Co-operative movement “There has been a sustained growth in “The societies are grappling with weak
registered impressive the number of non-agricultural societies financial, administrative systems and
performance in 2017, the since 2014. The number of savings and poor governance including farmers’
Economic Survey 2018 credit societies grew by 4.8 percent ineffective oversight. While externally
reveals. to 10,029 in 2017 from 9,567 while the primary institutions are facing weak
that of other non-agricultural societies enforcement of various regulations by
During the period under review, Co- rose by 19.3 in 2017,” says Mwangi. He departments of Co-operatives at both
operatives and unions engaging in added only one agricultural union was national and county level,” said Prof.
agricultural activities and financial registered in 2017. Kieyah.
sector increased by 1,378 societies
accounting a 7.4 percent from 18, 573 Co-operatives in major sub sectors such Coffee Co-operative unions have
in 2016 to 19,951 in 2017. as coffee, sugarcane, pyrethrum, cotton formed National Coffee Co-operative
and milk registered a slight increase in Union (NACCU) a conglomeration of
In the agricultural sector the value of sales from Ksh 10.541 billion 14 coffee Co-operative unions spread
organizations societies increased to in 2016 to Ksh10.547 billion in 2017 across the country.
5,910 in 2017 from 5,629 societies mainly due to an increase in milk.
in 2016 with multi produce societies NACCU chairman Jospeh Koskei said
recording the highest number at 67 Co-operative societies in dairy industry reviving of the societies will help in
from 2,222 in 2016 to 2,289 societies recorded the highest earnings of Ksh5.5 boosting coffee production in and
in 2017. billion followed by coffee sub sector in thus expand Kenya’s share in the
the review period. international market. In the cotton sub
Kenya National Bureau of Statistics sector plans are underway to form new
director general Zakary Mwangi says Co-operatives and equally to enable
that the number of societies in the farmers boost production.
dairy sector increased by 11.4 percent
from 465 in 2016 to 518 in the review The share of marketed coffee sold Most of the Co-operatives societies in
period. through Co-operatives increased the cotton industry collapsed owing
marginally from 29.4 in 2016 to 29.6 to stiff competition and external
percent in 2017. conditions such as the SAPs.
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