Uasin gishu: The National Agricultural Value Chain Development Project (NAVCDP), in partnership with the County Government of Uasin Gishu, is ramping up efforts to encourage farmers throughout the county to join Savings and Credit Cooperative Organizations (SACCOs) and other cooperatives. This initiative is designed to help farmers access credit and various financing opportunities by delivering their produce to cooperatives.
According to Kenya News Agency, during a recent engagement forum with farmers from various SACCOs and cooperatives, Cosmas Langat, the County Project Coordinator for NAVCDP in Uasin Gishu, emphasized the importance of increasing membership in these entities. Langat noted that a greater number of farmers in SACCOs and cooperatives would attract more funding support from both government and other organizations.
Langat described the initiative as a tripartite agreement that connects Common Interest Groups (CIGs), Farmer Producer Organizations (FPOs/Cooperatives), and SACCOs. Through this agreement, farmers supply produce via their cooperative, which handles bulk sales and processes payments, while the SACCO uses this off-taker agreement to provide production loans and financial services.
The NAVCDP County Coordinator highlighted that SACCOs and cooperatives receive various grants for support. Inclusion grants are provided for office setup, including the digitization of services through the procurement of equipment like computers and furniture. Once established, these entities also receive mobilization funds to recruit more members. Additionally, farmers who save money are eligible for a matching grant, where NAVCDP matches their savings shilling for shilling, thereby empowering the SACCOs with sufficient funds to operate and lend to members.
Langat stressed the importance of the agreement, aiming for farmers to increase productivity by saving and obtaining loans, which enables them to deliver more produce to cooperatives. To mitigate loan risks, farmers are organized into groups such as Common Interest Groups (CIGs) and Vulnerable and Marginalized Groups (VMGs). These groups offer self-guarantees, ensuring that if one member defaults, others can provide support.
Farmers at the forum expressed concerns that discourage SACCO membership, including inadequate information, insufficient mobilization funds, and mistrust in some SACCO leadership. They advocated for mass sensitization at the grassroots level using existing government administrative structures like Chiefs to raise awareness of the benefits of joining SACCOs.
