Leaders of the cooperative argued that recent appointments were made without adequate consultation with local stakeholders.

KENYA – Vihiga Dairy Cooperative Society has strongly opposed the local government’s attempt to install new management without their consent.
The move, spearheaded by the County Department of Cooperatives, has sparked outrage among farmers who view it as an unjustified interference in the affairs of a thriving institution.
The cooperative, a key player in Vihiga’s agricultural economy, expressed dissatisfaction with what it describes as a top-down approach by county authorities.
Leaders of the cooperative argued that recent appointments and reshuffles within the county administration were made without adequate consultation with local stakeholders, including farmer groups and cooperatives that play a vital role in grassroots development.
“We are not just milk producers—we are a community with a voice,” said one senior member of the society. “If decisions affecting our future are made in boardrooms without engaging us, we risk reversing the gains we’ve worked so hard to achieve.”
As the standoff continues, farmers warn that further interference could jeopardize funding allocations, training programs, and infrastructure initiatives that have supported the growth of dairy farming in the region.
The situation underscores the delicate balance between government oversight and cooperative autonomy, and the power of grassroots voices in defending their institution.
Despite the backlash, County Executive Committee Member (CECM), Mr. Joseph Lunani defended the county’s actions, stating that the meeting aims to address issues raised in a recent probe report.
Kabianga Dairy limited under administration amid financial struggles
Recently, Kabianga Dairy Limited was officially placed under administration, signalling financial difficulties that require urgent intervention.
The decision to place Kabianga Dairy Limited under administration was made by I&M Bank Limited, which has selected Swaroop Rao Ponangipalli and P.V. Rao as joint administrators.
Their appointment is in accordance with Kenya’s Insolvency Act, 2015, which permits struggling companies to continue operating while restructuring plans are considered.
Under this framework, the appointed administrators will assess the company’s financial situation, explore potential recovery strategies, and determine the best course of action to protect the interests of creditors, employees, and other stakeholders.
As the administration process unfolds, stakeholders will be keen to see whether Kabianga Dairy Limited can successfully restructure and regain financial stability.
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