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Coffee farmers to get Sh.80 guaranteed minimum return price, government announces

The Government has adopted a comprehensive approach to bolster the entire agriculture value chain with an investment of Sh.267.7 billion in nine key value chains for the fiscal year 2023/2024 as part of its commitment, to revitalizing the agriculture sector and demonstrating its dedication, to driving the Bottom-up Transformation Agenda.

With the recognition of the pivotal role of coffee in the country’s economic growth and its significant support to over 5 million Kenyans involved in the whole coffee value chain, the Government has undertaken strategic initiatives to enhance production.

According to a press statement from the Office of the Government Spokesperson, the Government, in addressing the decline in coffee production caused by price volatility and high production costs, has taken decisive steps which will see Kenya’s coffee production increase from the current 51,000 MT to over 100,000 MT by 2025.

Additionally, the Government has disbursed Sh.6 billion to coffee farmers, to bolster the Coffee Cherry Advance Revolving Fund distribution and implement, a comprehensive coffee production sensitization program.

The Government Spokesperson, Dr. Isaac Mwaura, disclosed that on 10th January 2024, the distribution will target Machakos, Kajiado, and Taita Taveta Counties at Kagundo Kainga Stadium, whereas distribution will take place in Nyeri County (Karatina Stadium), Kirinyaga County (General Kassam), and Murang’a County (Ihura Stadium) the following day.

“This will ensure a Guaranteed Minimum Return (GMR) of Sh.80 per kilo of coffee cherry, up from the previous non-guaranteed price of Sh.60,” stated Dr. Mwaura, adding that any surplus revenue generated beyond this guaranteed minimum price, will be distributed to the farmers as coffee cash bonus.

He cited the landmark distribution to have started in Makueni County on 9th January 2024 and will extend to all 37 coffee-producing counties nationwide as per the attached sensitization schedule spearheaded by the Ministry of MSME & Cooperative Development.

Further, he revealed that the Government has significantly increased the allocation to the Agricultural Financing Corporation, from Sh.2 billion to Sh.10 billion, noting that this augmentation is aimed at providing farmers with access to credit, at single-digit interest rates.

“These funds will further alleviate the production costs and bolster productivity in the coffee sector,” he added.

Through these strategic interventions and substantial investments, Dr. Mwaura said that the Government aims to not only revive the coffee industry, but also to empower farmers thus ensuring sustainable growth and prosperity within the sector.

By Michael Omondi

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