State to heed ruling on new coffee payment system

Coffee cash crop on a farm in Nyeri.[FILE,Standard]

The government says it will obey a court ruling that suspended implementation of the Direct Settlement System (DSS) coffee payments model and will ensure adequate public participation.

This comes against the backdrop of the Kerugoya High Court judge Edward Muriithi ordering the government last month to stop implementation of the DSS model for six months and ensure they not only engage farmers but also allow them to air their views on the proposed regulations.

To this end, the government will now embark on a proper public participation mechanism with coffee farmers across the country, following the court suspension of the payments model.

Commissioner of Cooperatives David Obonyo has assured coffee farmers that they will be heard.

“The Government has heeded the court ruling and will not force coffee regulations on farmers. We will ensure there is a proper mechanism for public participation and dialogue with farmers. We have an elaborate plan of going around trying to talk to farmers, engage them and hear what their concerns are and guide. We do not want to appear like we are pushing the farmers what they do not want,” he said.

Last month, the National Coffee Cooperative Union (NACCU) rejected this policy, saying that they were not consulted.

The policy, which was introduced last year, provided that farmers would receive payments directly through their mobile money accounts, even as NACCU warned that the directive would weaken cooperative societies, which are critical for the operations of coffee farmers.

On Saccos management, Obonyo warned officials and the board of management against embezzlement of taxpayers’ money, saying the government has put in place measures to protect Kenyans

He assured that they are taking stock of rogue Saccos which have been defrauding their members, even as he stated that the government is in the process of merging small Saccos.

Obonyo also said that the government is working to strengthen the Sacco Society Regulatory Authority to ensure there is compliance in terms of undertaking regular inspections to ensure Saccos are able to maintain the required credential standard ratio in terms of ratio in addition to ensuring the members’ money is secure.

“We need to ensure the growth of Cooperatives by trying to ensure there is compliance with policies and legal frameworks in place. The Sacco Subsector is performing well, covering over 30 per cent of our national savings, which is key to achieving financial inclusivity. We are working with counties to ensure compliance,” he explained.

“Whenever we find any Sacco that has tried to misuse members’ funds, the first thing we do is conduct an inquiry, remove the board from office to ensure we surcharge those involved, but this has been very minimal,” Obonyo added.

He has also said that coffee societies with a low volume of production could be merged to make the Saccos strong units and profitable, adding that the Government has not been registering new Saccos in the last few months because it is undertaking the review.