Farmers in Ol Kalou establish new dairy cooperative to rebuild livelihoods

KENYA – Farmers in Ol Kalou, Nyandarua County, have taken a significant step toward economic recovery by forming a new dairy cooperative following years of financial struggles.

The establishment of Ol Kalou United Savings and Credit Cooperative Society aims to restore the confidence of farmers who previously lost millions of shillings in shares under the debt-ridden Ol Kalou Dairy Limited.

According to county officials, the launch of the new cooperative was overseen by Nyandarua County’s Executive for Trade and Cooperative, John Muiru, who installed the society’s top leadership.

The move has been hailed as a fresh beginning for hundreds of farmers eager to secure better financial management and steady income from their milk deliveries.

David Kanyoni, Chairman of the new cooperative, emphasized that Ol Kalou United Sacco would prioritize the safety of farmers’ proceeds while maintaining a debt-free operation.

He noted that the financial challenges that previously plagued the farmers were caused by former directors of Ol Kalou Dairy Limited, who incurred massive bank loans that pushed the company into unsustainable debt.

As reported by Kanyoni, the shift to a cooperative model offers renewed hope for stability and accountability.

“We are paying promptly for milk deliveries to win the trust of farmers and have also introduced advanced payments, repayable without interest, to help them expand production,” Kanyoni said.

He added that these efforts have already begun to bear fruit, with milk deliveries increasing significantly from 8,000 liters in June to 20,000 liters currently.

The new initiative comes a year after President William Ruto directed Ol Kalou Dairy to revert to a cooperative society, enabling national government support to mitigate farmers’ financial losses.

Kanyoni further mentioned that the cooperative expects to receive a Ksh 30 million grant promised by the President, which will be instrumental in settling outstanding debts owed to the farmers.

Despite these assurances, a section of elderly farmers remains skeptical about the viability of the new cooperative, citing past experiences.

However, the county government has expressed confidence in the society’s structure and management to restore faith among stakeholders.

General Manager Francis Gitahi outlined the cooperative’s plans to expand production capabilities, particularly in value-added products such as yogurt.

According to Gitahi, the current yogurt production stands at 500 liters but is expected to rise to 3,000 liters. This increase is anticipated to generate higher revenue for farmers, positioning the cooperative as a key player in the region’s dairy industry.

 

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