Coffee farmers set for Sh4b boost in State sector reform plan

Small-scale coffee farmer Jacob Ruto at his farm in Lelmokwo Ngechek Ward, Nandi County. [Titus Too, Standard]

Coffee farmers are set for a major boost after the government announced plans to inject Sh4 billion into the New Kenya Planters Cooperative Union (KPCU) to enhance the Coffee Cherry Revolving Fund.

This will increase the coffee advance payment price from Sh20 per kilo of cherry to Sh80 per kilo.

Cabinet Secretary for Cooperatives and Small and Medium Enterprises Simon Chelugui said the move is part of efforts to ensure farmers are well facilitated through subsidised inputs that will allow them to produce 15kg per bush.

“We began this year by restoring our position as a country in terms of production and earnings by ensuring 800 farmers will benefit from this,” the CS said on Wednesday during a stakeholder consultative forum on the Coffee Cherry Revolving Fund. 

According to Mr Chelugui, the funds will be paid in two tranches. 

The first pay will go to cherry deliveries to the factory which will be given Sh40 and the second tranche of Sh40 will go to millers upon delivery of parchment, depending on the quality of their produce. 

They will also get another payment after the sale of the processed coffee. 

Farmers will also be allowed to offer or withdraw the trading of their produce depending on the performance of the Nairobi Coffee Exchange (NCE). 

NCE will also reform the direct sale settlement through a decision support system (DSS) by ensuring that the farmers will be identified by their licence numbers.

Deputy President Rigathi Gachagua, who is tasked with spearheading reforms in the sector, has on several occasions assured farmers of better income from coffee.

The DP recently indicated that prominent global coffee companies, including Starbucks and Java Coffee Company, have expressed a strong interest in directly purchasing coffee from local farmers.

These initiatives aim to enhance farmers’ earnings and uplift their financial well-being. 

Kenyan coffee is among the most celebrated in the world due to its complex flavour and aroma.

Developments at NCE have equally reignited hope among farmers that the once-thriving coffee sector is on the path to recovery.

Prices and volumes of coffee traded at the NCE hit new records during this week’s auction for the first time since the relaunch of the trading platform in mid-August, in a boost to ongoing reforms overseen by DP Gachagua.