Mwea Rice Growers MultiPurpose

In Summary

On 10.1.1964, Mwea irrigation scheme licensee Thrift Co-operative Society Ltd., with membership drawn from rice growers who were licensees (tenants) of the National Irrigation Board in Mwea irrigation settlement, was registered. As the name thrift implies, society bylaws only allowed members to save but not borrow. Since the intention was to save and borrow, the society changed its name on 22.7.1965 to Mwea Tebere Co-operative Savings and Credit Co-op Society Ltd., and the by-laws were also amended to enable members to save and borrow. This new society operated on check-offs deducted from their rice proceeds by the National Irrigation Board (NIB) and remitted to the society.

Share contributions, principal loans, and interest were to be deducted from the rice growers’ proceeds, and the net was either paid in cash or through commercial banks.
In 1966, the government decided to build Mwea Rice Mills Ltd. and allowed the society members to buy shares. Their bylaws could not allow them, and therefore they formed another society in 1967 by the name of Mwea Farmers Co-operative Society Ltd. . to take care of members’ stakes and interests in the private company.

The two societies were amalgamated under the name Mwea Amalgamated Rice Growers Co-operative in 1983, but later in 1993, they split into the current MWEA RICE GROWERS MULTIPURPOSE CO-OP and MWEA RICE FARMERS SACCO. Rice farmers have continued to benefit from short-term and long-term loans based on three times their shares and deposits from Mwea Rice Farmers Sacco. On the other hand, Mwea Rice Growers Co-operative Society Ltd., apart from taking care of the interests of rice farmers in Mwea Rice Mills Ltd., has, after the liberalization of the rice sector in 1999, taken over the functions of rice production, processing, and marketing from the National Irrigation Board.