NAKURU – The Kenyan government has reaffirmed its commitment to implementing reforms in the coffee sector, focusing on eliminating cartels and boosting profitability. Cooperatives and Micro, Small and Medium Enterprises (MSME) Development Cabinet Secretary Simon Chelugui announced this during a meeting with coffee farmers in Nakuru.
According to Kenya News Agency, the Cooperatives Bill 2023, which has received Cabinet approval, and the Coffee Bill 2023, currently under Senate consideration, are central to revolutionizing the sector. He emphasized that the reforms aim to enhance institutional frameworks and governance structures in cooperatives, as well as mainstreaming agriculture. These changes are expected to curb the influence of private profiteers who have historically dominated the market, setting prices for farmers’ coffee at their discretion.
Chelugui warned farmers against coercion by those opposed to the reforms, urging support for government initiatives that promise to free them from exploitation and increase their coffee earnings. He highlighted that strengthening cooperative oversight will boost smallholder agriculture, the mainstay of millions of Kenyan households. The government is also promoting worker cooperatives, which can aggregate young professionals and artisans into viable economic units.
The Cooperatives Bill 2023 introduces the Inter-governmental Cooperatives Relations Technical Forum and strengthens the office of the Commissioner of Cooperatives. Chelugui asserted that these measures will reduce farmers’ dependency on profiteers controlling the coffee value chain.
Acknowledging the significant role of coffee in Kenya’s economic growth, Chelugui pointed out that the sector aligns with the Bottom-Up Economic Transformation Agenda (BETA). He noted the decline in Kenya’s global coffee export rank from 7th to 25th, resulting in reduced earnings and farmers abandoning the crop. The Kenya Kwanza administration, he said, is focused on addressing the challenges crippling the industry.
Under the new reforms, additional coffee cooperative unions have been licensed to sell directly at the Nairobi Coffee Exchange (NCE) and overseas, bypassing middlemen. The Coffee Bill seeks to reestablish the Coffee Board of Kenya and the Coffee Research Institute as independent farmer institutions. Chelugui disclosed a policy setting the minimum price for a kilogram of cherry at Sh80, part of the Guaranteed Minimum Returns (GMR) initiative, to be implemented across 37 coffee-growing counties. The Cherry Fund, administered by the New Kenya Planters Cooperative Union (KPCU), ensures prompt payment to farmers and offers protection against price fluctuations.
A report by the NCE shows that farmers earned over Sh24.8 billion from coffee sales last year, with cooperative societies and estates selling a significant portion of their produce through the NCE. The auction market has seen increased participation and sales, with notable earnings for NKPCU and Alliance Berries Limited.
Chelugui expressed confidence in the growing market and the farmers’ trust in the process, urging increased production to meet demand. He mentioned interest from Korean buyers and potential partnerships with major companies like Starbucks and C Dorman.
The Cabinet Secretary emphasized that NKPCU would collaborate closely with farmers to implement these reforms, focusing on increased production to capitalize on the growing opportunities in the coffee sector.
GARISSA – Residents in five Kenyan counties, Turkana, Marsabit, Mandera, Wajir, and Garissa, are expected to benefit from a significant reduction in the impact of floods and droughts, thanks to the Horn of Africa Ground Water for Resilience Program (HoAGW4RP). The project, approved in July 2022 and estimated to cost USD 45 million, aims to assist approximately 1.5 million people across these counties.
According to Kenya News Agency, the Project Implementation Unit Coordinator for the Water Resources Authority, during a media briefing in Garissa, HoAGW4RP will run for six years. Its primary focus is to ensure the recharging and protection of underground water reservoirs. This will be achieved by educating communities in the target areas on conservation measures and introducing managed aquifers to capture rain and floodwater.
Managed aquifers, which are artificial, will be designed to augment the natural underground water aquifers. These will take the form of dams, meticulously conserved and protected. Njuguna explained that these systems are intended to intercept water flow, creating reservoirs that allow water to percolate into the ground, thus preventing floods and destruction. By employing techniques such as ditches, furrows, spreading basins, or sand dams, the project will store water for use even after the rainy season, while simultaneously recharging the underground reservoirs.
The project, encompassing a wide range of stakeholders including national and county governments, non-governmental organizations, and community leaders, aims to ensure comprehensive participation and successful completion. It includes the drilling of at least 400 new boreholes and the rehabilitation of existing ones to enhance community resilience. These stakeholders will also receive critical data on the water reservoirs, such as salinity, potential water yield, and optimal borehole drilling locations.
HoAGW4RP is part of a regional initiative involving Kenya, Somalia, Ethiopia, South Sudan, Djibouti, Eritrea, and the Intergovernmental Authority on Development (IGAD), with funding from the World Bank. This joint implementation is intended to promote regional integration among communities living in the borderlands within the Horn of Africa, fostering a collaborative approach to addressing water scarcity and the challenges posed by floods and droughts.