Hundreds of farmers in Ol Kalou, Nyandarua County, have established a new dairy cooperative society, Ol Kalou United Savings and Credit Cooperative (Sacco), following significant financial losses tied to the mismanagement of the former Ol Kalou Dairy. The initiative aims to restore trust and rebuild the local dairy industry.
The cooperative was officially launched and its leadership inaugurated during a ceremony attended by top county officials, including John Muiru, Nyandarua County Executive for Trade and Cooperative Development.
A Fresh Start for Farmers
David Kanyoni, Chairman of the former Ol Kalou Dairy Cooperative Society, emphasized that the new Sacco will ensure transparency and financial security for farmers’ milk proceeds, steering clear of the debts and challenges that plagued the previous organization.
“We are paying farmers promptly for their milk deliveries to regain their trust. Additionally, we provide interest-free advances to encourage increased milk production,” Kanyoni stated.
Milk deliveries have already risen significantly, from 8,000 liters in June to 20,000 liters currently.
Addressing Past Challenges
The transition follows a directive by President William Ruto last year, ordering Ol Kalou Dairy to revert from a limited company to a cooperative society to facilitate national government intervention. Mismanagement by former directors, who accumulated massive bank debts, left many farmers in financial distress despite their significant investments in share capital.
Boosting Production and Farmer Confidence
The cooperative expects to receive a KSh 30 million grant from the national government, a promise made by President Ruto. This funding will help clear debts owed to farmers and strengthen the cooperative’s operations.
Francis Gitahi, General Manager of the Dairy, revealed plans to scale up yogurt production from 500 liters to 3,000 liters, generating additional revenue for members.
Winning Back Skeptical Farmers
While some older farmers remain cautious about the new venture, county officials assured them of its viability. The cooperative’s leadership is committed to fostering transparency and sustainable growth to rebuild farmer confidence and enhance livelihoods.
The launch of the new dairy cooperative marks a significant step forward for Ol Kalou’s farming community, signaling renewed hope and economic stability.
