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Meru cooperatives seek Sh2.2bn bailout to clear debts and boost farmers

Under the proposal, Sh555 million has been earmarked to revive Afya Millers Cooperative Union, while Sh660 million will be used to clear debts affecting coffee cooperative societies and Saccos.

By Bradley Bosire
2 min read
Meru cooperatives seek Sh2.2bn bailout to clear debts and boost farmers

A fresh push to revive Meru's cooperative sector is now centered on a Sh2.2 billion funding appeal, with leaders saying the money will help clear years of unpaid debts, restore struggling societies and open new income opportunities for thousands of farmers.

The proposal was presented to Deputy President Kithure Kindiki during the Meru Central Dairy Cooperative annual farmers' field day, where cooperative leaders outlined projects they believe will restore the sector's growth and strengthen agricultural value addition across the county.

Under the proposal, Sh555 million has been earmarked to revive Afya Millers Cooperative Union, while Sh660 million will be used to clear debts affecting coffee cooperative societies and Saccos.

Another Sh200 million has been proposed for the second phase of the Meru Dairy feed mill, Sh750 million for the construction of a cotton ginnery and Sh21 million to support the avocado value chain.

Meru Cooperative Forum secretary Kenneth Gitonga said the planned investment would strengthen manufacturing and raise farmers' earnings by supporting processing and value addition.

Meru Dairy is also seeking Sh200 million to expand its recently commissioned animal feeds factory, which was built at a cost of Sh500 million. The expansion plan includes the production of fish feeds, human flour, construction of silos and installation of grain dryers.

The processor is also planning to increase its milk handling capacity from the current 780,000 litres a day to more than one million litres daily to match the expected rise in milk deliveries.

Gitonga said the cooperative has recorded rapid growth over the last two years, with its turnover increasing from Sh9.3 billion in 2023 to Sh20.1 billion in 2025.

Despite those gains, some cooperative societies continue to face financial pressure. Afya Millers is burdened by debts exceeding Sh200 million, while coffee cooperative societies and Saccos are owed Sh660 million.

Cooperatives Cabinet Secretary Wycliffe Oparanya said the government has proposed legal reforms aimed at dealing with mismanagement within the cooperative sector.

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