On May 13, Agriculture Cabinet Secretary Peter Munya announced a Sh2.7 billion loan initiative for coffee farmers, offering a 3% interest rate through cooperative societies to enhance production. The program, part of government efforts to support agricultural growth, allows farmers to access funds by registering with their cooperatives and using coffee shipments as collateral.
Munya highlighted that Sh177.8 million had already reached 15,703 farmers nationwide, though participation varied significantly by region. In Tharaka Nithi, only Sh280,300 was disbursed to 14 farmers, compared to higher uptake in counties like Meru, Kirinyaga, and Murang’a.
"Farmers must register through their cooperatives, with the society confirming that loan repayments will be deducted from coffee sales," Munya explained. He emphasized that loans remain accessible regardless of where farmers sell their coffee, as long as they are registered with their cooperative societies.
In addition to the loan scheme, the government continues subsidizing fertilizer costs. Farmers now pay 60% of the price, with the state covering the remaining 40%. A Sh1 billion allocation supports fertilizer purchases, benefiting 80,087 registered farmers, including 1,049 in Tharaka Nithi who received Sh3.4 million in subsidies.
Munya urged farmers to leverage both initiatives to double coffee output. He noted that the New Kenya Planters Cooperative Union (New KPCU) operates as a state-owned entity, enabling government-led coffee production and distribution while providing subsidized inputs to farmers.
