Government Spokesperson Hon. Sen. (Dr.) Isaac Mwaura addressing the media on matters of national importance on Dec 9, 2024.
The Kenyan government has introduced reforms to transform the coffee sector and improve farmers’ livelihoods. Speaking at KICC on Monday, Government Spokesperson Hon. Sen. (Dr.) Isaac Mwaura outlined key measures to tackle industry challenges. The reforms aim to empower farmers and restore Kenya’s reputation as a global coffee leader.
A key change is a direct payment system, ensuring farmers receive earnings promptly and transparently. Under the new system, payments will go directly into farmers’ bank accounts or mobile wallets, eliminating delays. To reduce production costs, the government capped cooperative charges at 20% of coffee earnings for services like transport. Cooperatives must digitize operations by 2024/2025, including digital weighing scales and clear stock records.
These changes will improve transparency, reduce costs, and promote accountability in the coffee sector. Additionally, the government introduced regulations to protect farmers’ funds. Cooperative accounts now separate farmers’ money to prevent misuse. Furthermore, borrowing by cooperatives requires prior approval from farmers at annual general meetings, ensuring better oversight.
The government has also mandated insurance coverage for all coffee to protect against theft and crop damage. Cooperatives must secure adequate insurance and improve security measures, including relocating coffee stocks to safer locations. These steps aim to reduce risks and protect farmers’ investments.
To promote integrity, cooperative leaders can no longer hold dual roles in cooperatives and Savings and Credit Societies. This measure ensures fairness and prevents conflicts of interest in managing farmers’ funds.
“These reforms are a testament to the government’s commitment to revitalizing agriculture and making it a pillar of Kenya’s economic transformation. We call on farmers to embrace these initiatives and work closely with cooperatives to unlock their full potential,” said Dr. Mwaura.
With these bold changes, the coffee sector is poised for a revival, offering farmers a brighter and more prosperous future while solidifying Kenya’s position on the global stage.
