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Oparanya calls for audit before waiver of coffee debt

The Cabinet Secretary for Co-operatives and MSMEs Development, Wycliffe Oparanya, has urged coffee farmers to first audit and verify the origin of their debts before seeking government waivers.

Speaking during a coffee farmers’ sensitization forum at General Kassam Grounds in Kirinyaga County, Oparanya acknowledged the county’s request for debt relief consideration but emphasized the need for vigilance to ensure that only legitimate debts are submitted.

He disclosed that his ministry has so far received verified debt waiver requests amounting to Sh6.8 billion from coffee cooperative societies nationwide. Out of this, the government has allocated Sh2 billion to begin settling part of the claims.

Oparanya underscored the importance of the ongoing coffee sector dialogue, noting that coffee remains a key foreign exchange earner for Kenya. He added that the government is actively supporting farmers to increase national coffee production to at least 150,000 metric tonnes by 2028.

Kirinyaga Governor Anne Waiguru had appealed to the national government to fast-track the waiver of Sh1.06 billion in debts owed by 14 coffee cooperatives in the county, saying the burden continues to weigh heavily on farmers and slow the full revival of the sector.

“Debts owed by our cooperatives to financial institutions weigh heavily on our farmers, and we appeal for the fast-tracking of debt waivers, which would be a major boost to coffee farmers in Kirinyaga,” she said.

The affected cooperatives include Karithathi, Rung’eto, Thirikwa, Ngiriambu, Rwama, Kanjuu, Mirichi, Inoi, Kibirigwi, Mwirua, Mutira, New Ngariama, Baragwi and Kirinyaga Cooperative Union.

Waiguru said resolving the debt burden would complement the gains already being realized through reforms and investments that the county government has made across the coffee value chain.

In Kirinyaga, Waiguru said the coffee sector is steadily regaining strength, with production rising from 28,000 metric tonnes in 2017 to 48,000 metric tonnes, while annual farmer earnings have climbed to approximately Sh7.4 billion adding county has remained deliberate in supporting coffee farmers through interventions targeting production, processing, storage, marketing and value addition.

“Kirinyaga coffee is our pride and a legacy crop that continues to transform livelihoods. Our goal is to ensure that farmers derive maximum value from their produce by strengthening every stage of the value chain,” she said.

Waiguru noted that Kirinyaga continues to distinguish itself as one of the world’s top producers of premium Arabica coffee, with its beans renowned for superior quality and high market value.

She cited the performance of Kii Coffee Factory under Rung’eto Farmers’ Cooperative Society, whose AA-grade coffee sold at Sh1,715 per kilo in 2023, the highest price recorded in Kenya in five years. The governor attributed the improved fortunes to strategic county investments aimed at boosting both productivity and quality.

Among the interventions, she said, is the county’s support for affordable, high-quality coffee seedlings propagated at Kamweti Nurseries, where farmers are accessing improved planting material to rejuvenate old bushes and increase yields.

“This planting season, the county produced 120,000 Ruiru 11 grafted seedlings, which were sold to farmers at Sh55 each, compared to Sh100 in private nurseries”, she noted.

The Coffee Revitalization National Steering Committee (NSC) chair, Peter Njeru Ndwiga, said Kirinyaga remains top producer of coffee in Kenya with best managed cooperatives. He assured the farmers that his committee will raise the brand of Kenya coffee to compete with others, especially Ethiopian coffee in the international market.

Baragwi Cooperative Society Chairman, Muchiri Murage, thanked the national government for issuing farm inputs to farmers, while observing that the improved returns by coffee cooperatives were a result of good leadership and at same time appealed for the waiver of debts owed by the societies, saying the burden was still a setback to increased production.

By Mutai Kipng’etich

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