Murang'a: Leaders of various coffee cooperative societies in Murang'a have voiced their opposition to the Direct Settlement System (DSS) mode of payment for farmers' coffee. The leaders argue that paying cherries directly to farmers will render cooperative societies insignificant.
According to Kenya News Agency, during a recent meeting between officers from the state department of cooperatives, led by PS Patrick Kilemi, and coffee farmers in Murang'a, society leaders praised the government's ongoing reforms in the coffee sector but expressed concerns over DSS. The DSS aims to ensure farmers receive payments directly within five days after trading at the Nairobi Coffee Exchange.
The leaders, speaking to KNA, emphasized that the payment of cherries should not bypass cooperative societies, as farmers deliver their cherries to their respective factories. Godfrey Kanyiri, Chairman of Kahuhia Cooperative Society, noted that cooperative societies play a crucial role in collecting and marketing farmers' coffee and that bypassing them in the payment process could hinder their operations.
Kanyiri further explained that societies are responsible for collecting, weighing, and processing coffee at the factory level before it is marketed. He highlighted that coffee at the NCE is traded in US dollars, and most farmers do not have dollar accounts, thus advocating for payments to continue through cooperative societies.
Additionally, Kanyiri mentioned the financial challenges cooperatives face, such as debts that need to be settled through farmers' earnings. He referenced the previous coffee year, where Kahuhia society received Sh130 million through the DSS, with Wanjengi factory receiving the highest payment of Sh141.55 per kilogram.
Francis Ngone, chairman of Murang'a Cooperative Union, echoed similar sentiments, stressing that cooperative societies are instrumental in increasing coffee production by ensuring farmers have access to subsidized inputs like fertilizers and chemicals. He argued that bypassing cooperatives for payments would leave farmers to operate independently.
In response, the PS stated that the government will allow farmers to deliberate on the matter, while emphasizing the importance of increased production. Kilemi noted that the DSS was implemented to ensure timely payments to farmers post-trade at the NCE.