Government Unveils Bold Plan to Rescue Co-operatives, Boost Coffee and Dairy Industries

Kenya, 26 November 2025 - The government has announced plans to accelerate long-delayed reforms aimed at restoring confidence in Kenya’s co-operative movement and closing governance gaps that have exposed members’ savings to fraud and mismanagement.

Co-operatives and MSMEs Cabinet Secretary Wycliffe Oparanya said a comprehensive transformation of the sector will be anchored in the proposed Co-operatives Bill, 2024, which has already been endorsed by both the National Assembly and the Senate.

The Bill, which seeks to replace the current Co-operative Societies Act, is expected to be enacted by March 2026 once mediation is finalised.

Speaking at the 4th Annual Co-operative and SMEs Conference in Naivasha, Oparanya said the new legal framework will tighten oversight, close loopholes that have enabled corruption, and align the sector with the Constitution.

He further announced sweeping reforms in the coffee industry, noting that the government is targeting an increase in production from the current 50,000 metric tonnes to 150,000 metric tonnes by 2029.

A steering committee has been set up to oversee the reforms, which will be executed through the Kenya Planters Co-operative Union (KPCU).

The agenda includes upgrading processing equipment and encouraging more Kenyans to consume coffee locally – currently estimated at only five per cent.

On the dairy front, Oparanya revealed that the struggling New Kenya Co-operative Creameries (KCC) will undergo restructuring and partial privatisation to resolve persistent inefficiencies, including prolonged delays in paying farmers.

He said the government is working to settle outstanding arrears that have discouraged production.