DP Gachagua asks coffee cooperatives to disclose financial costs

A coffee farmer in Murang'a attending his coffee during harvesting season. [Boniface Gikandi, Standard]

Deputy President Rigathi Gachagua has asked Coffee Cooperative Societies to publish and make known details of their financial costs and deductions to their members.

Gachagua on Friday said in line with the coffee reforms agenda, Sacco management officials should make full disclosure of the financial costs.

He was speaking at the official opening of the 2024 Central Kenya National Agricultural Show at the Kabiru-ini grounds in Nyeri.

The Deputy President was tasked by President William Ruto to lead reforms in the Coffee Sub-sector in a battle against ruthless cartels.

Gachagua who has publicly stated that the journey to reforms is not for the faint-hearted has always maintained the battle against the cartels will be won either way.

"We have been defeated not because we are lazy or because we have failed to work but because the cartels are too entrenched in that sector. There are about three to four cartels who are well organised," Gachagua said in a previous event.

He said the separation of licenses for milling, brokerage and marketing, and buying of coffee has removed the longstanding conflict of interest among players in the sub-sector.

And while calling on political leaders to keep off the ongoing reforms in the agriculture sector, Gachagua said for full disclosure, cooperative societies must publish and make known their costs and deductions to their members

"I have asked the Ministry of Co-operatives and Ministry of Agriculture to fast-track the administrative and legal actions to enhance Corporate governance, transparency and accountability in cooperative societies," he said.

This he said, includes direct payment to coffee farmers from the Direct Settlement System (DSS).