Agriculture, Livestock, Fisheries and Cooperatives Cabinet Secretary Peter Munya says Sh2.7 billion is now available for coffee farmers to boost production.
The money will be loaned to coffee farmers at very low rates with a payback interest of three percent and would be accessed through coffee cooperatives societies.
Addressing farmers during a sensitization exercise at Maara, Tharaka Nithi County, Munya revealed that Sh177, 836,478 has already been disbursed to about 15,703 farmers in the country.
He, however, noted that the number of those taking loan in Tharaka Nithi was relatively low with only Sh280,300 having been given to 14 farmers.
“Others counties like Meru, Kirinyaga and Murang’a have taken advantage to borrow the money compared to Tharaka Nithi where the number of farmers taking up the loans is very low,” he said.
Munya explained that to access the loan in advance, farmers are required to deliver their coffee to the factories to be weighed in kilos which would then be used as security for loans.
“All that is needed is your society to put in your signature that the money loaned will be deducted from the coffee sold,” he explained, adding that this would help in ensuring farmers pay back the money.
He added that farmers would still have access to the loans whether they sold their coffee through New Kenya Planters Cooperative Union (New KPCU) or other outlets.
“You don’t need to sell to only New KPCU to get the loans. You can sell anywhere and as long as you are registered through your societies,” he said.
Furthermore, Munya said coffee farmers would continue enjoying fertilizer subsidized up to 40 percent, which can be accessed through the National Cereals and Produce Board (NCPB).
He also revealed that Pesident Uhuru Kenyatta has availed Sh1 billion to help the farmers purchase fertilizers and other facilities required for farming.
So far, 80,087 farmers have registered for the subsidized fertilizers and 59,000 from 18 counties have already benefited. In Tharaka Nithi, 5,753 farmers have registered while 1, 049 have benefited, summing up the total spend in the county to Sh3,422,660.
He urged farmers to take advantage of these two opportunities offered by the government to increase their coffee production.
He said New KPCU is now a State corporation under the State Department for Co-operatives in the Ministry of Agriculture which enables the government to take charge on behalf of the farmers in manufacturing and selling coffee, giving them subsidized fertilizers as well as advancing cherry loan. (KNA)