In a significant move to reform the coffee sector, the Kenyan Government, through the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development, is implementing new measures to ensure farmers receive the maximum value for their coffee. Cabinet Secretary for Cooperatives and MSMEs Development, Simon Chelugui, outlined these reforms during the launch of the Coffee Cherry Advance Revolving Fund in Uasin Gishu.
According to Kenya News Agency, the government’s Executive Order No. 1 of 2022 was a catalyst for these reforms, addressing long-standing challenges in coffee production and productivity. The CS acknowledged that coffee production in the country had declined to 51,000 metric tonnes from a previous high of 145,000 metric tonnes. He urged farmers to increase coffee production nationwide, highlighting the sector’s profitability potential.
Chelugui indicated that the new reforms aim to ensure prompt and fair payment to farmers, emphasizing the need for farmers to receive their money upon the arrival of the harvest at the factory. This approach is intended to empower farmers and reduce their dependence on credit institutions for purchasing farm inputs.
The government plans to provide comprehensive extension services in collaboration with experts from the New Kenya Planters Cooperative Union (KPCU) and the Coffee Research Foundation. These services will educate farmers on better coffee farming practices. Chelugui also called for the employment and deployment of enough extension officers by county administrations to provide farmers with necessary advice.
Highlighting the initiative by the Uasin Gishu administration, Chelugui commended the setting up of a 4-acre coffee nursery at Chebororwa Agricultural Training Centre (ATC) to supply certified seedlings to farmers. He noted that previous laws were unfavorable to coffee farmers and mentioned a new Coffee Cooperative Bill before the national assembly and the senate aimed at reducing the gap between farmers and consumers.
Chelugui also addressed the issue of coffee marketing, noting that previously an individual trader could hold three licences as a miller, marketer, and exporter, adversely affecting the profitability for farmers. New regulations now restrict individuals to a single licence in one of these roles. He reported a significant increase in coffee prices in the Nairobi Coffee Exchange market as a result of these changes.
Under the new regulations, farmers and marketing agencies can now withdraw their coffee from the market when prices are unfavorable and have the right to sell up to 15 percent of their coffee through private treaties. The CS emphasized that farmers should receive their payments within 5 days of selling coffee through the Direct Sales Settlement (DSS).
Chelugui challenged coffee farmers in Uasin Gishu and Elgeyo Marakwet counties, which currently produce 106 metric tonnes and 94 metric tonnes respectively, to increase their production targets to 1,000 metric tonnes and 800 metric tonnes.
Uasin Gishu Governor Jonathan Chelilim reiterated his administration’s commitment to supporting coffee farmers in accessing resources, expanding water systems for irrigation, adopting the National Coffee policy, and establishing 1 million Coffee seedlings at Chebororwa ATC. He also noted the significant strides made in the sub-sector, including increased acreage under coffee cultivation and provision of advanced equipment to farmers.