MP pleads with government to bail out the coffee farmers

Kigumo MP Joseph Munyoro. [File, Standard]

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.