A coffee farmer sorts out coffee berries at Dedan Kimathi University of Science and Technology in Nyeri on October 3, 2023. [Kibata Kihu, Standard]
Kigumo MP Joseph Munyoro has called on the national government to bail out coffee farmers the same way it has written off a Sh117 billion debt it was owed by sugar mills.
The Cabinet, on October 09, 2023, endorsed the write-off of the debts following parliamentary approval. During a meeting at State Lodge Kisumu, President William Ruto acknowledged the resolutions by the two Houses of Parliament on the reforms sanctioned by the Cabinet for the turnaround of the sugar sector.
Mr Munyoro, who spoke in Murang'a County when Youth Affairs Cabinet Secretary Ababu Namwamba launched Murang'a Youth Service, said the government should bail out the farmers he said are facing many challenges due to the implementation of the new coffee regulations.
"Mt Kenya is a coffee growing zone but farmers are faced with many challenges. I am asking the government to set aside Sh6 billion for the purposes of bailing the sector," said Munyoro.
Munyoro said there are fears buyers are conspiring to ignore the Kenyan coffee at the market.
"I suspect that the cartel has a global agenda which will be difficult to dismantle," said Munyoro.
The MP spoke as the Nairobi Coffee Exchange (NCE) leadership, chaired by Mr Peter Gikonyo, reached out to the cooperative society management committee pleading with it to release their coffee for the auction.
Gikonyo said the 2023/2024 season started on a high note after 6,369 bags of coffee were presented at the auction market from 362 cooperative societies and estates.
"We are anticipating that in the auction, more coffee will be presented and more buyers will participate," said Gikonyo.
In the last coffee sale number 33 of 2022/2023 on September 26, the buyers bought 5,614 bags that generated Sh133,610,398 ($896,730.44) with a bag sold at an average of Sh27, 291 ($183.17).
It is estimated that more than 100,000 bags of coffee have been kept in the stores awaiting the market to stabilize.
The sugar companies owe a massive Sh117 billion in bank loans, tax arrears and penalties, as well as farmers' and employees' dues.
The sugar millers owe banks Sh65 billion, Sh50 billion in taxes and nearly Sh2 billion in farmers' dues.
