Coffee farmers are set to reap more from their farms following a government initiative that will see them sell a kilo of coffee cherry at Ksh 80 from the previous Ksh 60.
In a statement, Government Spokesperson Isaac Mwaura said,
“The government has disbursed Ksh 6 billion to coffee farmers to bolster the Coffee Cherry Advance Revolving Fund distribution and implement a comprehensive coffee production sensitization program. This will ensure a guaranteed minimum return (GMR) of Ksh 80 per kilo of coffee cherry up from the previous non-guaranteed Ksh 60.”
Mwaura also stated that ‘surplus revenue generated beyond this guaranteed minimum price will be distributed to farmers as coffee cash bonus’.
The distribution began yesterday in Makueni County and will extend to all 37 coffee-producing counties nationwide. On January 10, it set for Machakos, Kajiado, and Taita Taveta Counties, while on January 11, the distribution will be in Nyeri, Kirinyaga, and Muranga counties.
The Spokesperson also added,
“The government has significantly increased the allocation to the Agricultural Financing Corporation, from Ksh 2 billion to Ksh 10 billion. This is aimed at providing farmers with access to credit at single-digit interest rates. These funds will further alleviate the production costs and bolster productivity in the coffee sector.”
Speaking on the launch of the Coffee Cherry Advance Revolving Fund (CCARF) in Makueni County, the Cabinet Secretary for Cooperatives and SMEs Simon Chelugui, whose ministry is spearheading reforms in the coffee sector said,
“We are going to fulfill our promise of restoring coffee to its full glory for the benefit of the farmers and our economy in general. We have rolled out key legislative and institutional reforms geared towards freeing the farmers from the yoke of cartels and these reforms are already bearing fruit.”
Changes in the coffee sector
In December 2023, Chelugui announced an increase in the price of premium coffee from Ksh13,500 to Ksh52,500 per bag.
The Cabinet Secretary explained that,
“The reforms we started earlier in the year are paying off. That is a very notable increase. This increase shows that the coffee reforms are working and farmers are winning big.”
He also revealed that ‘following a global interest in Kenya’s coffee, some 32 companies are now participating in the Nairobi Coffee Exchange (NCE), which has led to the better prices for farmers’.
The Government Spokesperson has said it targets to double coffee production in the country from the current 51,000 metric tonnes to over 100,000 metric tonnes by the year 2025.