The government has adopted a comprehensive approach to strengthen the country’s entire agriculture value chain.
In a press release seen by The Kenya Times, the government spokesperson Isaac Mwaura noted that the state, as part of its commitment has invested Ksh 267.7 billion in nine key value chains for the fiscal year 2023/2024.
According to the spokesperson, this move demonstrates the President Ruto-led government’s dedication to driving the bottom-up transformation agenda.
Further, the government has initiated strategic measures to enhance the pivotal role of coffee in economic growth and its substantial support to over 5 million Kenyans engaged in the entire coffee value chain.
These decisive steps as per the statement will double coffee production from the current 51,000 MT to over 100,000 MT by 2025.
Consequently, Mwaura noted that the approach will address the decline in coffee production attributed to price volatility and high production costs.
“To achieve this, the government has disbursed 6 billion shillings to coffee farmers, reinforcing the Coffee Cherry Advance Revolving Fund distribution and implementing an extensive coffee production sensitization program,” said the Government Spokesperson.
According to the statement, the distribution set to start in Makueni County, will target Machakos, Kajiado, and Taita Taveta Counties.
Afterwards, Nyeri, Kirinyaga, and Murang’a will follow on January 11 to ensure nationwide coverage.
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“One of the key outcomes of this initiative is the Guaranteed Minimum Return (GMR) of KES 80 per kilo of coffee cherry, a significant increase from the previous non-guaranteed price of KES 60.
Any surplus revenue generated beyond this guaranteed minimum price will be distributed to farmers as a coffee cash bonus,” added the spokesperson,” reads the statement in part.
Further, the spokesperson noted that under the guidance of the Ministry of MSME & Cooperative Development, the landmark distribution will reach all 37 coffee-producing counties as per the attached sensitization schedule.
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Government Increases AFC Allocation
Simultaneously, the government has substantially increased the allocation to the Agricultural Financing Corporation (AFC), raising it from Ksh 2 billion to Ksh 10 billion.
Additionally, this augmentation is designed to provide farmers with access to credit at single-digit interest rates, thereby alleviating production costs and bolstering productivity in the coffee sector.
Through these strategic interventions and substantial investments, the government aims not only to revive the coffee industry but also to empower farmers, ensuring sustainable growth and prosperity within the sector.
