The Ksh.3 billion coffee fund faces delays as the government ties its disbursement to the restructuring of the Kenya Planters Cooperative Union (KPCU), raising concerns among coffee farmers who had relied on the funding for the 2019 crop cycle.
Trade and Industry Cabinet Secretary Peter Munya confirmed the delay, stating the government aims to channel the fund through KPCU to avoid establishing new institutions for each agricultural initiative. This decision pushes the fund’s implementation back by at least 12 months, as officials work to restructure the financially troubled cooperative.
Paranoia ¶
KPCU, once representing 700,000 small-scale farmers through 300 cooperatives and 200 estate farmers, has deteriorated over decades due to mismanagement, criminal activity, and political interference. The cooperative was placed in liquidation in 2009 after embezzlement left it unable to meet liabilities.
A 2014 court filing estimated KPCU’s assets at Ksh.5 billion, but its financial status remains opaque. Despite a presidential directive to audit the cooperative, inquiries by Citizen Digital to its management have gone unanswered.
Analysts warn the government’s reliance on KPCU risks further delays. Tegemeo Institute’s Timothy Njagi noted farmers have already shifted to independent associations, questioning the feasibility of reviving the cooperative. Agronomist Njue Nyaga added that without a transparent audit, the fund would fail to benefit producers.
‘Good intentions’ ¶
The coffee fund aligns with President Uhuru Kenyatta’s reforms to empower farmers by reducing reliance on middlemen. Established in 2016, the Coffee Sub-Sector Reforms Committee aimed to address systemic issues, including monopolies at the Nairobi Coffee Exchange (NCE). Its 2018 report recommended audits and market restructuring, but farmers remain skeptical of progress.
Claims of political interference in the committee’s work have fueled distrust. Meanwhile, the government projects the reforms could boost coffee output by 10,000 metric tons annually, generating Ksh.3 billion in additional revenue. However, Kenya’s coffee production has declined sharply—from 130,000 metric tons in the 1980s to an average of 50,000 metric tons—threatening its international market standing.
With farmers increasingly abandoning coffee for crops like macadamia and avocado, the delayed fund risks further eroding the sector’s viability.
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