Cabinet meeting chaired by President William Ruto approved release of an additional Sh4 billion
By Our Correspondent
Coffee farmers are set to receive a windfall after the Cabinet approved release of an additional Sh4 billion in form of advance payment for their crop harvest, as reforms in the subsector gain momentum.
This means farmers will now earn Sh80 a kilogramme of cherry up from the current price of Sh20, thanks to the government’s commitment to liberate the coffee subsector from a cartel that has been exploiting farmers.
The funds are additional to the Sh3 billion released earlier, bringing the total amount to Sh7 billion.
The decision of the Cabinet meeting, which was chaired by President William Ruto, is part of the measures being taken by the government towards implementation of the Administration’s pledge of Guaranteed Minimum Returns for farmers.
It is also part of the reforms being driven-by Deputy President Rigathi Gachagua, whose intention is to enable farmers take control of the coffee supply chain, roasting and marketing of their own beans for greater profit.
The DP has since started discussions aimed at accessing the US market. Last week he held follow up talks with US Ambassador to Kenya Meg Whitman, to link Kenyan coffee farmers with one of the world’s largest coffee chain and enable them to fetch premium price in the market.
DP Gachagua said the search for more markets is aimed at increasing farmers’ earnings.
Additionally, he says the government is working on increasing coffee production as well as reduced operational costs for factories and acquisition of efficient pulping machines.
This will reenergize the Nairobi Coffee Exchange, which has witnessed depressed prices and low sale volumes at the auction.
He explained that the development underlines government’s commitment to liberate coffee farmers from exploitation by middlemen.
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