Murang’a Sacco Raises Concern Over Unsold Coffee, Urges Government Intervention

Murang’a:A notable sacco in Murang’a, Amica Sacco, has voiced concerns to the government over the ongoing challenges that have obstructed the efficient marketing of coffee. This appeal comes amid rising apprehensions about stockpiles of unsold coffee gathering in coffee mills.

The Kenya News Agency reported that Mr. James Mbui, the Chief Executive Officer of Amica Sacco, highlighted the financial peril that both the farmers and the supportive financial institutions currently face due to these unresolved coffee sale issues. He conveyed these concerns during a special annual general meeting in Murang’a on Wednesday.

Mbui commented on the significance of coffee farmers to the institution, saying, “Coffee farmers are the backbone of Amica Sacco, and I can say we are staring at a time that is very uncertain, and we don’t know what will happen by the end of this year because the majority of societies are yet to sell their coffee.”

This dire situation has led some societies to resort to borrowing money, with hopes of selling their coffee early next year. The predominant cause of these delays in coffee sales appears to stem from newly implemented regulations that dictate specific roles to participants in the coffee value chain. Additionally, certain coffee societies remain reluctant to sell their produce to licensed marketers due to concerns over unfavorable pricing.

Emphasizing the scale of the issue, Mbui informed that Amica Sacco serves a substantial number of coffee farmers from Murang’a County, numbering over 50,000. He expressed worry that without revenue from the coffee sales, these members could find themselves facing unpredictable financial challenges.

On a broader scale, Mbui pointed out that the prevailing economic conditions have also impacted the savings of members in financial institutions. He specifically noted the rising costs of food and fuel, which have heightened the cost of living for many Kenyans, subsequently affecting their capacity to save and manage their loan repayments.

To address these challenges and better serve their members, Amica Sacco has turned to several strategies, including embracing digital services. Looking to the future, Mbui revealed the sacco’s financial ambitions for 2024, aiming for revenue of Sh. 1.35 billion against anticipated expenditures of Sh. 1.05 billion. Optimistic about the coming year, he said, “We are hoping 2024 will be a favourable year as compared to 2022 and 2023, and the key drivers for next year’s budget are loan management, growth in membership, digitization, and cost management.”