PS now assures coffee farmers of Sh700 million debt waiver in the next budget

Of the Sh1.2 billion the Government availed a few years ago for debt waiver for coffee farmers, only Sh500 million has been paid out. The Principal Secretary, State Department of Cooperative Development Ali Noor Ismail has assured farmers that the Government is committed to settling the remaining balance.

Mr Ismail said once the balance is offset, farmers will have been fully freed from the bondage of huge debt, that has been an obstacle to the growth of the coffee sector.

"We have made arrangements to ensure the Sh700 million debt waiver balance the Government owes coffee farmers is factored in the 2016/2017 budget, after which the proceeds will be released to the respective coffee cooperatives in the country,’’ he said.

Speaking when he visited Bingwa Sacco in Kerugoya town, Ismail also said there is urgent need to review the Cooperative Societies Act, the Sacco Societies Act and the Sacco Policy Act in order to create a level playing ground for all actors.

He said he was also aware of the emergence of Greenland Sacco, owned by the Kenya Tea Development Agency (KTDA), which is said to have brought about an uneven playground for other tea sacco’s in the country. "Yes, I have learnt of the entry into the sector of the Greenland Sacco which is giving other tea saccos sleepless nights; but even as I believe competition is healthy, I will ensure an even playing ground is created for all,’’ said Ismail.

He was reacting to claims by Bingwa Sacco Chief Executive Officer Jane Mugo that the entry of the rival had created tension and anxiety in the sector due to the superior advantage it enjoys from KTDA.

‘’Greenland Sacco is wholly owned by KTDA and in order for it to get members, it has been applying unorthodox means at the risk of the loans the defectors own us. We urge our PS to intervene and tame this practice for the good of the sector,’’ she said. Ismail said he will soon hold consultations with concerned stakeholders with a view to bringing sanity in the sector.