The Nairobi Coffee Exchange (NCE) is planning to license five more coffee cooperative unions by the end of this month.
This follows the licensing of 11 cooperative unions.
The unions will sell coffee directly at the NCE and overseas, thereby eliminating the need for middlemen between farmers and buyers.
NCE is also expected to reopen and operate under the new coffee regulatory framework next week where Co-op Bank will provide the Direct Settlement System (DSS) technology.
The system aims to eliminate intermediaries from the coffee value chain and ensure fair prices for farmers.
Co-op bank was selected as the DSS provider following a competitive bidding process undertaken by NCE and approved by the Capital Markets Authority (CMA).
According to Cooperatives Principal Secretary Patrick Kilemi, the national government is working with county governments to strengthen the extension services to boost coffee production.
He revealed that the government has laid out measures to increase production from the current 51,000 metric tons to 260,000 metric tons by the year 2027.
This is expected to be achieved through a number of measures such as lowering cost of production by subsidizing farm inputs, enhancing accessibility of the Cherry Advance Revolving fund, revamping the Coffee Research and strengthening extension services.
By Thuita Jaswant
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