State seeks to revive coffee with revolving fund

The amount that each farmer can access will depend on the amount of coffee that they produce.

The government plans to lend cash to coffee farmers in a bid to revive the sector that was once a leading foreign exchange earner but is now in decline.

The Ministry of Industrialisation is setting up a Sh3 billion fund that will advance cheap credit to small scale coffee farmers with the aim of boosting production and quality of the crop.

The Coffee Cherry Advance Revolving Fund will give loans at a rate of three per cent to farmers affiliated to various cooperatives, including the Kenya Planters Cooperative Union.

The amount that each farmer can access will depend on the amount of coffee that they produce.

The ministry has recently published the draft regulations that are expected to set up the fund and is currently seeking input from the public.

Regulations

It said the regulations would enable it to start advancing the money to farmers from the revolving kitty.

“The government wishes to inform all stakeholders in the coffee sub-sector and members of the public in general that the rules and regulations required to govern the Sh3 billion Cherry Advance Revolving Fund have now been approved by Cabinet and published in the Kenya Gazette,” said the ministry in a statement inviting views.

“Members are invited to submit written comments and feedback by January 15, 2020. These regulations, which are a key requirement under the Public Finance Management Act, will now pave way for the rollout of the funds.”

Farmers will need to be members of cooperative societies to access the money.