Cooperatives and Micro, Small, and Medium-Sized Enterprises (MSMEs) Cabinet Secretary Wycliffe Oparanya has urged cooperative societies across Kenya to take advantage of government-backed loans to enhance the value of their products.
Speaking in Iten, the CS emphasized that financial support was readily available through various state institutions, but many potential beneficiaries remained unaware of these opportunities.
Unlocking Government Funding for Cooperatives
Oparanya highlighted Kenya Industrial Estates (KIE) as a key financial institution with Sh3 billion in its accounts, dedicated to supporting organized groups.
The institution provides loans ranging from Sh100,000 to Sh20 million, enabling cooperatives and small enterprises to scale their operations and invest in value addition.
The CS noted that KIE has officers in all counties to facilitate loan applications, but regretted that the funds remain largely untapped due to low public awareness.
He urged cooperatives to proactively seek financial support, emphasizing that accessing these funds would significantly boost local industries and create employment.
In addition to KIE, Oparanya mentioned the Kjet Programme, a financing initiative within his ministry that covers up to one-third of the total cost of projects.
While primarily designed for the youth, this program also extends financial assistance to agriculture-based cooperative societies, fostering growth in key sectors like farming and agribusiness.
Furthermore, he announced that the government had successfully negotiated a Sh33 billion funding package from the World Bank, earmarked for cooperative groups to further enhance their economic activities.
Strengthening the Coffee Sector
During his visit, Oparanya addressed the concerns of coffee farmers, pledging government support through the New Kenya Planters Cooperative Union (KPCU). He revealed plans to provide:
- 10,000 kg of coffee seeds
- Pulping machines for five registered coffee cooperative groups under KPCU
Farmers had appealed for seeds instead of seedlings, arguing that establishing their own nurseries would give them better control over their farming operations.
They also sought expert agronomic advice and requested the government to supply pulping and coffee milling machines to improve processing efficiency.
Oparanya assured the farmers that KPCU would train them in coffee production and confirmed that his ministry would allocate an agronomist to provide expert guidance, despite county governments being responsible for hiring them.
Additionally, KPCU has applied for fertilizer from the government, which will be distributed to coffee cooperatives, ensuring that farmers receive adequate agricultural inputs.
Recognizing the aging population in the coffee sector, the CS encouraged farmers to involve their children in coffee farming.
He cited a worrying trend where the average age of a coffee farmer in the county was 70 years, compared to the national average of 60 years.
“If this trend continues, then it shows there is no future for coffee in the country,” he warned.
Dairy Farmers Encouraged to Increase Milk Supply
Beyond coffee, Oparanya turned his attention to the dairy sector, urging farmers to increase milk deliveries to the Kenya Cooperative Creameries (KCC).
He reassured them that KCC had settled all outstanding payments owed to farmers and had introduced a structured payment system where farmers would receive Sh50 per litre on the 10th of every month.
This move, he said, was aimed at stabilizing the dairy industry and ensuring that farmers received timely compensation, thereby encouraging them to expand production.
A Call to Action
CS Oparanya’s address underscored the government’s commitment to empowering cooperative societies and MSMEs, particularly in agriculture and value-added industries.
He urged cooperative societies, youth groups, and farmers to actively seek financial support from government institutions, emphasizing that available funds could transform businesses, increase productivity, and create employment opportunities.
With billions of shillings in funding readily accessible, the onus is now on cooperatives and entrepreneurs to leverage these resources to drive Kenya’s economic growth.
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