NAIROBI, Kenya, May 31 – President Uhuru Kenyatta has lauded coffee reforms singling out the regulation which enabled a section of coffee unions to directly market their produce and thereby getting higher returns.
In 2016, a presidential task force spearheaded the formulation of a new legal and regulatory framework to govern the coffee subsector.
Under new regulations, six coffee brokers received approval from the Capital Markets Authority (CMA) to market their own coffee.
While reaffirming Kenya’s commitment to creating a more sustainable coffee industry, the president noted that his administration has empowered coffee farmers to enjoy their property rights as coffee owners.
“Over the last three years we have eliminated the barriers created by an overly complex coffee industry structure that did not allow farmers to effectively participate in the coffee value chain and enjoy their proprietary rights,” he said during the g25 African coffee summit.
He singled out Kipkelion District Cooperatives Union which in March sold its coffee directly without going through brokers or taking to the auction and oversaw the sale of 134.4 tons of coffee to South Korea, earning over Ksh.103million.
Nearly 1,000 coffee farmers allied to the society received payment of Sh116 per kilo after making its first direct export to a South Korean buyer.
“Out of these reforms and the favourable international coffee prices, farmers are currently enjoying high payouts with some societies paying up to Ksh.125 per kg of cherry, this is an increase of about 50 percent as compared to the highest payout of about Ksh.85 in the previous year.” Kenyatta lauded
In 2019, the Kenyatta-led administration set up an Sh3 billion coffee cherry revolving fund which was among, others aimed at enabling farmers to improve their volumes of production.
“Coffee farmers are also able to enjoy subsidized farm inputs, including fertilizers; and affordable credit through the government supported programmes such as Ksh.1 Billion input subsidy programme and the Ksh.3 Billion cheery revolving fund,” Kenyatta added.
