Trans Nzoia Farmers Unite 25 SACCOs to Sustain Agricultural Financing

Twenty-five farmer Savings and Credit Cooperative Societies in Trans Nzoia County have come together to form a union aimed at sustaining agricultural financing after the National Agricultural Value Chain Development Project (NAVCDP) ends.

The new Trans Nzoia SACCO Union brings together one farmer SACCO from each of the county’s 25 wards. The union is expected to help farmers mobilise savings, access financing and continue investing in agriculture beyond the project period.

The county government has allocated Sh75 million to support the union, with Sh10 million already disbursed. The remaining funds are expected to be released in phases, subject to approval by the World Bank.

The initiative seeks to reduce farmers’ dependence on maize production by supporting alternative enterprises with potential to generate income and withstand changing weather conditions.

NAVCDP has been supporting several value chains in the county, including dairy, poultry, tomatoes, avocado and bananas. The diversification is intended to provide farmers with additional sources of income as unpredictable weather continues to affect crop production.

Recent poor rainfall has affected maize yields in parts of Trans Nzoia despite farmers receiving quality seed. The experience has increased the need for farmers to explore enterprises that can spread production and income risks.

The SACCO union will also strengthen farmers’ access to financial services at the grassroots. The county government is equipping SACCOs with facilities that allow members to access services closer to their homes, reducing the need to travel to banks or other financial institutions.

Farmers are being encouraged to join the cooperatives and develop a stronger savings culture. Increased membership and regular savings are expected to strengthen the financial base of the SACCOs and improve their ability to support members.

SACCO officials are also receiving training in management and governance as part of efforts to address leadership challenges that can undermine the performance and sustainability of farmer cooperatives.

The Sh75 million support is planned in three funding cycles of Sh7.6 million, Sh10.6 million and Sh55.8 million. The funds will support the union as farmers transition towards greater financial independence.

The formation of the union comes as NAVCDP-supported farmers prepare for the eventual end of the programme. By linking farmers under a common financial structure, the initiative aims to ensure that investments and gains made through the programme continue supporting agricultural production and farmer incomes in Trans Nzoia.