Hundreds of farmers in Ol Kalou in Nyandarua County have formed a new dairy cooperative after losing millions of shillings in shares in former debt-ridden Ol Kalou Dairy to rebuild their shattered lives.
The top County officials, led by the Executive for Trade and Cooperative, John Muiru, saw the launch and installation of the top officials of Ol Kalou United Savings and Credit Cooperative society.
Chairman of Ol Kalou Dairy Cooperative Society David Kanyoni said the Ol Kalou United Sacco will ensure the farmers’ proceeds from milk delivery are safe and the cooperative is free from any debt that bedeviled it when it was run as a limited company by some former officials.
Last year, President William Ruto ordered the Ol Kalou Dairy to revert to the farmers by being turned into a cooperative society from its then-limited company status to enable the national government to see how it can intervene.
The former directors of the debt-ridden Ol Kalou Dairy took hundreds of millions of bank loans causing misery to the farmers who had built share capital worth millions of shillings.
A large section of the elderly farmers of Ol Kalou Dairy remained skeptical despite the assurance from the County government officials on the viability of the new society.
“We are paying promptly for milk deliveries in a bid to win the confidence including giving them advanced payment repayable without interest so that they can increase their milk deliveries,” Kanyoni said.
Further, the chairman said milk deliveries have increased from 8000 litres in June this year to 20,000 litres currently.
He said that once the cooperative receives a sh30 million financial grant from the national government which was promised by President William Ruto will go a long way in offsetting debts owed to farmers.
The General Manager of the Dairy Francis Gitahi said they target to increase yogurt production from the current 500 litres to 3000 litres to earn more money for the farmers.
By Kimani Tirus