The Cabinet Secretary noted that 80 percent of the amount will be paid directly to the farmer, while 20 percent will be retained by the cooperative societies for operations and community development
By Nelson Musungu, Bungoma
Coffee farmers across Kenya will as from July begin receiving payments through a centralized system managed by Co-operative Bank, as part of sweeping reforms aimed at eliminating corruption in the coffee sector
“For years, coffee farmers have suffered under corrupt practices within cooperative societies, this new system will ensure that payments are secure, timely, and reach the intended recipients,” ~ Oparanya
The new initiative, unveiled by Cabinet Secretary for Cooperatives and MSMEs Wycliffe Oparanya in Bungoma during the launch of a new coffee factory at Kenya Planters Cooperative Union (KPCU) is designed to promote transparency and protect farmers’ earnings
“For years, coffee farmers have suffered under corrupt practices within cooperative societies, this new system will ensure that payments are secure, timely, and reach the intended recipients,” said Oparanya
Under the revised structure, farmers will earn Ksh 40 per kilogram of coffee delivered to their societies
The Cabinet Secretary noted that 80 percent of the amount will be paid directly to the farmer, while 20 percent will be retained by the cooperative societies for operations and community development
“The 20 percent retained will be managed by cooperative leaders and after covering operational expenses, any surplus can be distributed to farmers as bonuses,” Oparanya explained.
Farmers have been urged to open accounts with Co-operative Bank to ease the transition, though the government is also negotiating with Kenya Commercial Bank and Family Bank to expand accessibility nationwide
“Our aim is to eliminate payment delays and service inefficiencies by offering farmers a seamless banking experience,” Oparanya added.
He also encouraged increased productivity to meet rising global demand for coffee, calling on older farmers to mentor youth in the sector to secure its future
“To fully benefit from international markets, we need to involve the next generation in coffee farming as it is a vital step in preserving both knowledge and industry continuity,” he said
Plans are also underway to upgrade a coffee milling facility in Bungoma, enabling local processing and reducing the over reliance on foreign facilities
“It’s counterproductive to export raw coffee and import it back at triple the cost. A modern local milling plant will allow us to add value and increase profits,” Oparanya noted
He further pledged to dismantle entrenched cartels and called for fresh elections in all coffee societies to bring in accountable leadership
The event was also attended by Bungoma Deputy Governor Jenipher Mbatiany, Senator Wafula Wakoli, and former Governor Wycliffe Wangamati.
