Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development has issued guidelines for coffee cooperatives debt waiver 2024.
Through a public notice from Principal Secretary Patrick Kilemi the Ministry notified the public that any organization that has not forwarded its claims to Commissioner for Cooperatives Development to do so by close of business on July 4, 2024.
The government will use the following criteria for consideration of the waiver; loans granted to September 30, 2023, loans processed through coffee cooperatives societies and not individual walk in members and approval by the general meeting and coffee hypothecation.
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Others include list of benefiting members in case of infrastructure development or overheads and also loans outside the previous debt waiver.
The documents that need to be submitted by the financier or creditor for consideration of the waiver include purpose of the loan, principle amount applied, amount approved, interest rate charged, and repayment period, collateral as well as date of disbursement.
There should also be proof of transfer of funds to the cooperative’s account and loan statement indicating, the amount repaid and outstanding balance.
They should also provide general meeting minutes fixing the borrowing power duly certified by the county and approved borrowing powers by the Commissioner for Cooperatives Development.
Coffee farmers from 33 regions across the country will benefit from the KSh6.7 billion debt waiver by the government.
The coffee subsector in Kenya provides livelihoods to 800,000 farmers, 5 million indirect beneficiaries and contributes significantly to export foreign currency earnings.
By Obegi Malack
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