Cooperatives and Micro, Small and Medium-Sized Enterprises Cabinet Secretary Wycliffe Oparanya has called on cooperative societies to seek loans from government institutions to undertake value addition for their products.
Oparanya cited the Kenya Industrial Estates (KIE), which has Sh3 billion in their accounts, saying the organisation gives loans of between Sh100,000 and Sh20 million to organised groups.
The CS who was speaking in Iten said KIE has officers in all counties, where residents can apply for the funds, but regretted that the monies are yet to be disbursed as most Kenyans are not even aware.
He added that there was also the Kjet programme in his department, which finances up to a third of the total cost of projects, saying, though it targets the youth, it also finances agricultural-based cooperative societies.
Oparanya said the government had also negotiated for a Sh33 billion fund from the World Bank to be advanced to cooperative groups.
The CS, responding to farmers’ concerns, said his Ministry, through the New Kenya Planters Cooperative Union, will provide 10,000 kg of seeds and pulping machines for the five coffee cooperative groups registered with KPCU.
The coffee farmers had appealed for seeds, saying they didn’t want seedlings but wanted to establish their own nurseries, have coffee agronomists offer them expert advice, and have pulping and coffee milling machines from the government.
The farmers said they were ready to increase their coffee trees, especially along the Kerio escarpment, which will not only earn them income but also help in combating landslides.
In a bid to increase coffee production, the CS said KCPU will offer training to farmers, adding that while it’s the duty of the county to hire agronomists, he will offer them one through KPCU to ensure they have expert guidance.
He also assured them that KPCU had already applied for fertiliser from the government, which will be distributed to the coffee cooperatives to supply to their members.
The CS advised farmers to incorporate their children in the planting of coffee, saying a survey had shown that the average age of a coffee farmer in the county was 70 years against the national age of 60 years.
“If this trend continues, then it shows there is no future for coffee in the country,” he said.
Oparanya also appealed to the dairy farmers to increase the amount of milk delivered to KCC, assuring them that the company had not only paid all the money owed to farmers but would also be paying them by the 10th of every month at a cost of Sh50 per litre.
The area Governor, Wisley Rotich, said stern action will be taken against cooperative group leaders who embezzle members’ money.
By Alice Wanjiru and Joan Jelimo