The coffee industry export earnings have improved by 33% between 2014 and 2021, Agriculture Cabinet Secretary (CS) Peter Munya has said.
Speaking recently, when he launched the Coffee Prices Stabilization Framework, the CS said farmers are expected to earn more, noting that the government developed various interventions to ensure full recovery of the sub-sector.
“The Framework seeks to address challenges in the Coffee Subsector to improve farmers’ earnings, improve foreign exchange, improve Food and Nutrition Security and create employment,” he said.
In the last two decades, the subsector has encountered several challenges resulting in to drop in production; from 6kgs to 2kgs per tree.
According to Munya, some of the reforms that have positively impacted the subsector include establishing the commodities Fund, Coffee Revitalization Programme, Cherry Advance Revolving Fund, and E-Voucher Subsidy Programme, among others.
“15,703 farmers from 16 counties have benefited from Ksh 2.7 Billion Cherry Revolving Fund. A total of Ksh 177,836,478 has been disbursed under New KPCU Ltd,” he said.
Through the Ksh.1 billion Farm Inputs Subsidy Programme, out of 80,087 registered farmers, 59,000 farmers have already benefitted at Kshs 450 Million.
Tea Bonus Payment
Meanwhile, Munya warned small-scale tea factory directors holding farmers’ bonuses until December.
He termed keeping farmers’ funds unhealthy for any institution as accounting books are typically closed in June in preparation for a new financial year.
“Mini bonuses have already hit farmers’ accounts however we want all bonus payment settled by July 10. It is wrong for tea factory to continually hold payments because it does not incur any profitable interests to the farmer,” Munya said.
The CS said this year’s bonus is high because farmers’ produce had been bought at a reasonable price thanks to the government’s intervention in designing a minimum reserve price at the Mombasa tea auction.
Early last month, Kenya Tea Development Authority said a total of Sh3 billion would be paid to farmers in the form of mini-bonuses for the leaf sold between July 2021 to December 2021. The highest earners would receive Sh10 per kg. This increased from Sh5 per kg that the farmers got in 2020.
Munya also called on farmers to register their names at the county agricultural offices to easily access the subsidized fertilizers. The registration would help keep away brokers who buy the product and sell it at a higher price.
“Farmers should register themselves to easily access the fertiliser. Government has started dispatching fertiliser readily available at the National Cereals and Produce Boards depots at Sh2,800 from Sh6,000,” Munya said.
The CS also warned financial institutions against exploiting farmers by capping high-interest rates on loans.
“We cannot allow financial institutions to take advantage of our farmers. It is unreasonable for a farmer to borrow a principal amount of Sh100,000 only for the financial institution to demand for a full payment in two months,” Munya said.
Coffee industry export up 33%
By Peter Njoroge
The coffee industry export earnings have improved by 33% between 2014 and 2021, Agriculture Cabinet Secretary (CS) Peter Munya has said.
Speaking recently, when he launched the Coffee Prices Stabilization Framework, the CS said farmers are expected to earn more, noting that the government developed various interventions to ensure full recovery of the sub-sector.
“The Framework seeks to address challenges in the Coffee Subsector to improve farmers’ earnings, improve foreign exchange, improve Food and Nutrition Security and create employment,” he said.
In the last two decades, the subsector has encountered several challenges resulting in to drop in production; from 6kgs to 2kgs per tree.
According to Munya, some of the reforms that have positively impacted the subsector include establishing the commodities Fund, Coffee Revitalization Programme, Cherry Advance Revolving Fund, and E-Voucher Subsidy Programme, among others.
“15,703 farmers from 16 counties have benefited from Ksh 2.7 Billion Cherry Revolving Fund. A total of Ksh 177,836,478 has been disbursed under New KPCU Ltd,” he said.
Through the Ksh.1 billion Farm Inputs Subsidy Programme, out of 80,087 registered farmers, 59,000 farmers have already benefitted at Kshs 450 Million.
Tea Bonus Payment
Meanwhile, Munya warned small-scale tea factory directors holding farmers’ bonuses until December.
He termed keeping farmers’ funds unhealthy for any institution as accounting books are typically closed in June in preparation for a new financial year.
“Mini bonuses have already hit farmers’ accounts however we want all bonus payment settled by July 10. It is wrong for tea factory to continually hold payments because it does not incur any profitable interests to the farmer,” Munya said.
The CS said this year’s bonus is high because farmers’ produce had been bought at a reasonable price thanks to the government’s intervention in designing a minimum reserve price at the Mombasa tea auction.
Early last month, Kenya Tea Development Authority said a total of Sh3 billion would be paid to farmers in the form of mini-bonuses for the leaf sold between July 2021 to December 2021. The highest earners would receive Sh10 per kg. This increased from Sh5 per kg that the farmers got in 2020.
Munya also called on farmers to register their names at the county agricultural offices to easily access the subsidized fertilizers. The registration would help keep away brokers who buy the product and sell it at a higher price.
“Farmers should register themselves to easily access the fertiliser. Government has started dispatching fertiliser readily available at the National Cereals and Produce Boards depots at Sh2,800 from Sh6,000,” Munya said.
The CS also warned financial institutions against exploiting farmers by capping high-interest rates on loans.
“We cannot allow financial institutions to take advantage of our farmers. It is unreasonable for a farmer to borrow a principal amount of Sh100,000 only for the financial institution to demand for a full payment in two months,” Munya said.
