Kisii: The government has announced plans to settle approximately Sh6.8 billion in debts owed by coffee farmers' cooperatives to various financial institutions nationwide. This move aims to alleviate the financial burden on hundreds of coffee farmers and bolster the coffee sector's stability.
According to Kenya News Agency, the Cabinet Secretary for Co-operatives and Micro Small and Medium Enterprises (MSME) Development, Wycliffe Oparanya, confirmed the verification of Sh6.8 billion as legitimate claims from the coffee cooperative societies. The government is set to clear this accumulated debt, a significant step towards revitalizing the sector. Oparanya highlighted that while the total debt stands at Sh10 billion, the remaining Sh2.2 billion is expected to be recovered from cooperative officers accused of funds misappropriation.
During a sensitization meeting on reviving coffee production at Kisii School, Oparanya revealed that Sh2 billion has been allocated for this purpose in the 2025/2026 financial year. He also introduced a series of government reforms, including the Direct Settlement System (DSS), which aims to streamline payments and enhance transparency by ensuring that 80 percent of coffee sales proceeds directly benefit the farmers.
The Cabinet Secretary encouraged smallholder coffee farmers to utilize the Coffee Cherry Advance Revolving Fund (CCARF) for affordable credit to enhance their production capabilities. He also mentioned ongoing collaboration with county governments to distribute seedlings and modernize pulping equipment, with Sh500 million earmarked for quality seedling procurement.
Kisii County Executive Committee Member for Agriculture, Elijah Obwori, detailed local government efforts to modernize coffee production equipment across 22 cooperative societies. Over the past two years, 25,000 coffee seedlings have been distributed, and plans are underway to launch an e-voucher system for subsidized agricultural inputs.
The forum also featured insights from the Principal Secretary for the State Department for Cooperatives, Patrick Kilemi, along with New Kenya Planters Cooperative Union (KPCU) Chairperson Daniel Chemno and Managing Director Timothy Mirugi, among other notable attendees.