This archive report was first published on 21 July 2021.
State Revives Coffee Cooperatives with Sh20 Billion ¶
Published on July 21, 2021
The government is set to inject over Sh20 billion into the country's coffee sector over the next four years, in a bid to revive the industry and alleviate poverty in coffee-growing areas.
The revitalization project, launched in April 2020 by Agriculture Cabinet Secretary Peter Munya, aims to strengthen governance and capacity in coffee cooperatives, which are the backbone of the coffee industry in Kenya.
According to the plan, the government will invest over Sh21.3 billion in the coffee sector, with a focus on automating and digitizing coffee cooperatives to remove human interference and enhance accountability.
The project will also see the development of Coffee Management Information Software (CMIS) for all primary and secondary processing cooperatives, as well as the procurement and distribution of equipment such as computer hardware, printers, and digital weighing scales.
Additionally, over Sh3 billion will be invested in equipping and refurbishing cooperative growers' secondary coffee mills, which will be modernized and upgraded to required standards.
The government has also announced plans to establish coffee revolving funds and cherry advance funds, with over Sh1 billion and over Sh2 billion allocated respectively, to support smallholder farmers' cash flow constraints and their ability to finance farm operations and livelihoods.
However, the Ministry is considering expanding the Sh3 billion coffee cherry funds to offer additional services in the sector, following a slow uptake by farmers.
CS Munya has stated that the fund can be utilized for other activities within the sector, despite only Sh300 million being disbursed since its introduction a year ago.
The cherry advance levy was announced by President Uhuru Kenyatta in 2019, with the aim of helping farmers meet financial obligations after harvesting their crop and minimizing the time it takes for growers to get their earnings from their cooperative societies.
