The government has promised to pay an estimated Sh6.8 billion as settlement for debts owed to financial institutions by hundreds of coffee farmers across the country.
The Cabinet Secretary for Co-operatives and Micro Small and Medium Enterprises (MSME) Development, Wycliffe Oparanya, affirmed that the government had verified a total of Sh6.8 billion as legitimate claims from coffee cooperative societies and would clear the accumulated debt.
Oparanya noted that the total debt owed by the coffee growers was Sh10 billion at the moment, but the deficit of Sh2.2 billion would be settled by cooperative officers who misappropriated members’ funds.
The CS who was speaking during a sensitisation meeting on the revival of coffee production held at Kisii School pointed out that Sh2 billion had been set aside during this 2025/2026 financial year to pay the debt.
In addition to the debt waiver, he also pointed out other government reforms in the coffee sector, saying the introduction of the Direct Settlement System (DSS) for payments to farmers will eliminate delays and potential exploitation by middlemen as well as promote transparency.
“We have calculated the total expenditure for coffee production and agreed that 80 per cent of the proceeds from coffee sales will be directly issued to farmers, while 20 per cent will go to the cooperatives,” explained Oparanya.
The CS encouraged the smallholder coffee farmers to take advantage of the Coffee Cherry Advance Revolving Fund (CCARF) and access affordable credit to boost their production.
Additionally, Oparanya noted they are working closely with county governments to support coffee production in the counties through the distribution of seedlings and modernisation of pulping equipment.
“We have received 500 million that will be used to procure quality seedlings for coffee farmers and we are working together to ensure farmers acquire modern equipment to boost the quality of their production,” he assured.
Speaking at the same event, Kisii County Executive Committee Member for Agriculture, Elijah Obwori, noted that plans are underway by the county government to modernise coffee production equipment in the 22 coffee cooperative societies within the county.
Obwori added they had issued 25,000 coffee seedlings over the last two years and would continue with the initiative to boost coffee farming in the region.
“We are putting our coffee cooperative societies together in readiness for the launch of an e-voucher system where farmers will access subsidised agricultural inputs,” he said.
The forum was also attended by the Principal Secretary (PS) for the State Department for Cooperatives, Patrick Kilemi; New Kenya Planters Cooperative Union (KPCU) Chairperson Daniel Chemno; and Managing Director Timothy Mirugi, among others.
By Mercy Osongo
