Public Service Cabinet Secretary Moses Kuria has announced that coffee farmers will receive the Ksh6.8 billion Debt Waiver approved by Cabinet Starting from next week.
Kuria made the announcement on his X account where he said that the funds will be paid directly to farmers’ accounts.
“Good News to Coffee Farmers. The Ksh 6.8 billion Debt Waiver approved by Cabinet next week will be paid directly to farmers accounts,” said Moses Kuria.
He added that the government will not act as a debt collector, and that going forward, farmers will only receive loans from the Cherry Advance Fund.
“It is up to the lenders to subsequently look for the farmers to pay up through a Pay bill or whatever. Government is not a debt collector. Going forward farmers are only going to receive loans from the Cherry Advance Fund.”
Cabinet Approves Debt Waiver
This development follows the decision by Cabinet which saw the approval of a waiver on the historic Ksh.6.8 billion debt owed by coffee farmers nationwide.
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The decision, sanctioned by President William Ruto during a meeting at State House, Nairobi, on June 13, was aimed at revamping the coffee sector and enhancing the livelihoods of farmers.
“At the meeting, the Cabinet considered and approved the debt waiver for coffee farmers and other coffee sector reforms,” read the dispatch from State House.
Reprieve for Coffee Farmers
Cabinet directed coffee co-operatives, Saccos, and other creditors to submit the list of farmers who owe them money and supporting documents within seven days for verification and payment processing.
The Cabinet warned that any fraudulent and fictitious claims will be dealt with in accordance with the law.
The debt waiver is part of a broader scheme to revamp the coffee sector, which includes modernizing the New Kenya Planters Cooperative Union (KPCU) in accordance with international best practices.
“Additionally, to address the concerns on the quality of coffee parchments, modern eco-pulpers will be established in all emerging coffee growing areas for primary processing, enhancing efficiency and sustainability of the sub-sector,” said Cabinet.
Parliament Asked to Fast Track Reforms in the Coffee Sector
The Cabinet also called on Parliament to fast-track the enactment of governance reforms for co-operatives to establish institutional safeguards.
One Key reform included the requirement that the process of borrowing by cooperatives is only authorized by farmers during annual general meetings (AGMs).
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The interventions aim to enhance the production of coffee to the 200,000 metric Tonnes target by 2027 and reposition Kenya’s coffee on the global stage.
Cabinet noted that this would enhance competitiveness and contribution to the national development agenda since the crop was one of the nation’s premier exports.
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