Audit underway for Sh2b coffee debt write-off, says Oparanya
Enterprise
By
Graham Kajilwa
| Sep 24, 2024
The government has committed to waive Sh2 billion debt in the coffee sector and prioritise the crop as key in growing foreign exchange reserves.
The Ministry of Co-operatives and Micro, Small and Medium Enterprises Development will aggressively market coffee locally and internationally this financial year. Detailing some of the progress the ministry has made since coming into office of President William Ruto, Cabinet Secretary Wycliffe Oparanya noted that as of June 30 this year, production stood at 8,870 tonnes. This is compared to 875 tonnes in the same period in 2022.
"This is because of the reforms that have been undertaken under the leadership of this ministry," said the CS. Kenya has an ambitious production target of 51,000 tonnes.
The CS was speaking during a performance contracting meeting held with the Deputy Chief of Staff Deputy Chief of Staff, Performance and Delivery Management in the Office of the President Eliud Owalo.
Promotion of Kenyan coffee is one of the indicators in the performance contracting agreed in the meeting apart from reforms in the co-operatives space, financing of MSMEs and growing financial inclusion through the Hustler Fund.
"We are aware that Kenyan coffee has traditionally been a major source of foreign exchange reserve for this country. The ministry has committed to promoting coffee varieties both locally and internationally through trade fairs to promote exports," said Mr Owalo. He also revealed that the government will write off Sh2 billion debt choking farmers in the sector.
He said coffee debt has been a perennial challenge in the sector as he pointed out that the ministry has committed to write off this debt upon verification. "This has been accommodated within the budgetary provisions of the financial year 2024-25," he said. While confirming the expected write off, CS Oparanya said an audit has started to verify the debts before waiving. "Yes we are doing an audit already. The debt was about Sh6 billion but so far we are likely to waive sh2 billion because that is what we a has been provided for in the budget," he said.