Abstract:
his study sought to determine factors leading to poor performance of Kilimanjaro Native Co operative Union (KNCU) in reducing members' income poverty. The primary co-operative societies
in Siha district were a Case Study. Specifically, the study had three specific objectives: To identify
factors hindering KNCU performance, to identify factors for the declining production of coffee
among the members of KNCU and to assess the effect of trade liberalization on the performance of
KNCU. A total of 204 respondents were randomly selected. Primary data and secondary data were
used in this study. Data were collected using interviews, discussions with key informants and
documentary review. The data were analyzed using an SPSS version 16 software. Findings show
that some of the factors which hinder KNCU performance in reducing member income poverty
included; the non-availability of agricultural inputs, politics, climate change, poor management,
trade liberalization and incompetent officials at the primary co-operative society. In addition, the
inability of members to buy agricultural equipment was reported as a major constrain which led to
the poor production of coffee. This has led to an increase in poverty among members of primary
cooperative societies that are members of the KNCU. With this study, it is therefore recommended
that KNCU should assist its members to get fertilizers, insecticides and other agricultural inputs so
as to increase coffee production