This archive report was first published on 22 June 2021.
On 22nd June 2021, the Government of Kenya and Korean investor Cha Bo Yong unveiled a KSh85 million coffee factory in Baringo, marking a significant milestone in the country's coffee industry.
The factory, licensed on a 2.5-acre farm in Tugen hills near Katimok forest in Ossen-Kabartonjo ward, Baringo North sub-county, was made possible through a KSh85 million investment, with Cha Bo Yong contributing KSh70 million and the county government of Baringo contributing KSh15 million.
The new factory is expected to benefit coffee farmers in Baringo County, who currently produce an average of 100 tons of coffee beans annually. The factory's milling capacity of 1.2 tons of cherries per hour will enable farmers to grind their coffee in less than two weeks once it is finished.
Cha Bo Yong has also pledged to purchase 100 pulping machines, which will be distributed to 26 cooperative societies within Baringo and individual farmers.
Meanwhile, the Capital Markets Authority (CMA) has set 1st July 2021 as the deadline for coffee brokers to obtain new licenses under rules introduced in 2020 to eliminate cartels. Only licensed coffee brokers will be allowed to carry out coffee brokerage services after the deadline.
The rules aim to ensure speedy and transparent payment of proceeds to farmers through a direct settlement system established by a licensed commercial bank, thereby limiting the diversion of sales proceeds.
