How we plan to support cooperatives – Ruto
President William Ruto has said that the government is planning to support cooperatives to realise its goals.
Ruto said the government will support the sector through institutional reform measures.
This will be done through the harmonization of legislation governing various crops, with the aim of reducing the cost of production to boost production and competitiveness.
He said modernization of the Kenya Cooperative Creameries will enhance its efficiency and enable it sustainably manage the milk market glut by converting excess milk into powder to stabilise prices.
"We are setting up aggregation and distribution centres for storage, value addition and marketing of agricultural products. The objective of this partnership is to reduce postharvest losses, eliminate predatory cartels and boost farmer incomes," Ruto said.
He added that there will be interventions in the dairy sector, including the waiver of duties on the ingredients of animal feed.
Ruto said the move is aimed at raising national milk production from 2two litres on average, to seven litres per cow daily, enhancing small-holder incomes.
"Similarly underway are investments to refurbish coffee factory infrastructure, explore new export market opportunities in anticipation of increased coffee production, and enable the Kenya Planters’ Cooperatives Union to mill and market coffee," he said.
"This will provide affordable credit and subsidised inputs to coffee growers. This is how we intend to improve coffee productivity from 2 kilogrammes per tree to 5 kilogrammes."
Ruto said it will raise national production from 51,000 metric tonnes to 81,000 MT in the next crop year, and thereafter, 200,000 MT in the next 5 years.
The President added that in the textiles sector, the government has introduced appropriate incentives to stimulate the production of high-yielding, disease and pest-resistant BT cotton varieties.
He said that the state has also expanded cotton growing in semi-arid areas.
"The vehicle of implementing these measures is the cooperative cotton ginneries, whose modernization is a major strategic investment of the government," he said.
The President said that they have partnered with county governments to provide training and extension services to improve the quality and productivity in the leather industry.
"We are also investing in the rehabilitation and expansion of farmers’ markets throughout Kenya, the way we have commenced at the Tharaka Nithi market," he said.
"Our interventions extend further afield to the blue economy, where we are committed to supporting several fishing cooperatives in Nyanza and Coast regions to enable them to acquire cold rooms and fish processing equipment."
The President spoke at KICC when he led the country in celebrating Ushirika Day.
"I am delighted to be here with you as we reflect on the fundamental social and economic role played by a sector that serves as this nation’s silent but powerful engine of transformation," he said.
"The success of cooperatives is a testament to the power of aggregation and inclusion." BY THE STAR
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