Farmers demand nomination of new Coffee Board directors

By Lillian Kiarie

Kenya: Coffee farmers and traders have raised alarm over lack of Board of Directors at the Coffee Board of Kenya for the last one year.

The Board that is mandated to regulate the coffee industry in the public interest has been facing a lot of challenges that have put it on the spot.

Kenya Coffee Producers and Traders association (KCPTA) raised their concerns with the government on July 1, 2013.

The association wrote to Ministry of Agriculture, Fisheries and Livestock Cabinet Secretary Felix Koskei proposing amendments to Nairobi Coffee Exchange Trading Rules 2012.

The letter seen by The Standard, states that the State Corporation has been operating with a ‘Board’ composed only of the Managing Director and Chairman.

“It is important to note that Coffee Board of Kenya has never had a Board of Directors for the last one year as provided for in the clause 4 (1) of the Coffee Act 2001 which specifically provides for the composition of the Board. The board has been operating with a ‘Board’ composed of only the Managing Director and a Chairman,” it reads.

The letter states that some of the provisions gazetted on October 5,2012 in Legal Notice number 111 cited as Nairobi Coffee Exchange Trading Rules 2012 were ‘unsatisfactory, illegal and inconsistent’.

Audited books

KCPTA added that lack of the Board of Directors has led to lack of accountability. “It would therefore be true to say that financial accountability has been lacking at the Board with misgivings regarding the operations, capacity and conduct of the Board,” it said.

Head of Communications at KCPTA, K’Okoth Sylvestre, said Koskei is yet to respond to the letter.

“The Board has not convened an annual General meeting of representatives of coffee growers nor made its audited book of account available tom coffee farmers and the public for over 10 years, as provided by for in Clause 16(1) and 37 (1) of the Coffee Act 2001 and the Exchequer and Audit Act, “ reads the letter signed by K’Okoth.

The association representing farmers and traders is adamant that it is not responsible for the provision of and collection of coffee free trade samples.

“KCPTA has in the past been accused of conspiring with dormant dealers who only collect coffee at the trading floor. We wish to correct this position and clarify that Clause 51 of the Coffee General Rules 2002 clearly provided CBK with the mandate to deregister any dealer who is found dormant,” reads the letter in part.

The letter further adds that, “ It is the same Board that deleted this Rule 51 in 2006 through the Coffee General Amendment Rules, 2006 at Clause 30. It is the Board that has this mandate yet they have never exercised it,” it says.

Policy framework

KCPTA held a meeting with Governors in Nairobi last week to address the legal and policy challenges affecting the coffee sector in Kenya.

According to KCPTA Chairman Humphrey Kaaria there is an urgent need to put in places a proper legal and policy framework that enables coffee farmers to market, add value and benefit from coffee agribusiness.

Another rising issue stated by KCPTA raised issue with Clause 31 of the gazetted rules which does not recognise the existence of devolved governments, yet under the new Constitution the role of managing agricultural value chains including coffee marketing has been devolved to the counties.

The letter also adds that the new rules do not recognise groups of cooperatives  as entities that can jointly market their coffee.