Cabinet now clears the way for Cherry Advance Scheme

EU ambassador to Kenya Simon Mordue (second left) accompanied by Meru governor Kiraitu Murungi (right) and the Meru Coffee Mills General Manager Duncan Marete (fourth right) at the cupping laboratory on December 4, 2019. [Wainaina Ndung'u, Standard]

The government has cleared the way for access to cheaper credit for coffee farmers after ordering the operationalisation of the Coffee Cherry Advance Revolving Fund.

The order was made following a Cabinet meeting chaired by President Uhuru Kenyatta at State House, Nairobi, last Thursday.

The fund will offer credit to the farmers.

The State also approved the revival of the giant public coffee miller that will now be named New Kenya Planters Co-operative Union (New KPCU).

At the same meeting, former Nyeri County Executive for Agriculture Henry Kinyua was appointed chairman of the New KPCU.

Separately, Trade, Industry and Co-operatives Cabinet Secretary Peter Munya on Friday made seven appointments to the board of the New KPCU.

Board appointments

Those appointed are Joyce Wangari, Simeon Atheru, Sebastian Wambugu, Anthony Musau, Michael Mwirigi, Josephine Kemunto and Rita Mukundi.

The fund's operationalisation follows the drafting of new rules to govern its lending that were approved by acting Treasury Cabinet Secretary Ukur Yatani.

According to the Coffee Task Force Implementation Committee chairman Joseph Keiyah, the delay in operationalising the fund was due to the formulation of the stringent rules.

The fund shall operate under the New KPCU board. Its books will be audited annually by the auditor general and it will be subject to parliamentary oversight.

It will now be run directly by the Ministry of Co-operatives with an administrator appointed by the ministry's cabinet secretary.

Those willing to borrow from the fund must be members of a registered coffee co-operative society or the New KPCU.

Borrowers can access credit of upto 40 per cent of the prevailing average sale price at the Coffee Exchange, or can borrow Sh20 per kilogramme of cherry delivered.