Coffee co-op unions reject direct payment to farmers

Co-operatives CS Wycliffe Oparanya during inauguration of the new KUSCCO board on May 12, 2025. [Wilberforce Okwiri, Standard]

The National Coffee Co-operative Union (NACCU) has rejected the Direct Settlement System (DSS) payment policy introduced by the government, insisting they were not consulted in the decision.

The policy, introduced by Co-operatives CS Wycliffe Oparanya in November 2024, was for farmers to receive payments directly through their mobile money accounts.

Mr Oparanya defended the move, saying the same would speed up payments by cutting out delays and ensuring farmers are paid promptly after auctions.

However, NACCU has warned that the directive would weaken cooperative societies, which are vital to coffee farming operations. NACCU’s national chair, Felix Mureithi, said the cooperatives provide farmers with financial management support, credit access, and supplies like fertiliser. “Direct payments would result in disjointed income that would make it hard for farmers to repay loans or reinvest in their farms,” said Mureithi.

Speaking when a delegation of 25 members of cooperative unions met, Mureithi said they were unanimously rejecting the move and urged the government to stop interfering with coffee farming.

He insisted that the policy was forced and passed by Parliament, without their input, and although they respect the directives, the same would be destructive. “It is to collapse the co-operatives which our farmers depend on. We do not want direct payments. Unlike the government, the coffee cooperative is independent,” said Mureithi.

He explained that cooperatives were the custodians of all the proceeds of coffee from farmers in the 31 counties, and they should be allowed to transact their business according to their bylaws and act.

Further, Mureithi said the same would discourage coffee farming and would reduce the metric tonnes produced.

He claimed that the Nairobi Coffee Exchange (NCE), which manages the coffee exchange consists of alleged technocrats who know nothing about coffee farming.

“We need farmers to manage these cooperatives and coffee farming, the government stepping in will lead to more problems than solutions,” he said.

Mureithi denounced claims that the cooperatives are corrupted and there was a need for the government to step in. He insisted that the government should only be involved in policy making, but ensure farmers are consulted.

He broke down how cooperatives are involved in coffee farming. “Cooperatives get the flowers and take care of it for nine months to be cherries, then prepare the cherries for three months to a green bean. The process takes a year and it is done by cooperatives,” he said.

He insisted that denying cooperatives money will deny them resources to produce a quality product and coffee will become stale.

Further, he pointed out that cooperatives train farmers, unlike inexperienced government officers who use training to get per diems. “In 1988 and 1998, farmers were paid nothing because the system was the same as what the government had reintroduced. Once beaten, twice shy,” he said.

Maina Mureithi, NACCU’s secretary, said the government wanted to benefit from what it has not contributed. He pointed out how farmers struggle for at least four years to prepare coffee, only to be told that their money will be controlled by NCE.

“The coffee belongs to us farmers. We struggle to plant, spray, harvest, among other activities, only for someone to come in at the tail end and decide for us what to do with our money,” said Maina.

He insisted that unless they are involved in decisions, they will protest.