Government to pay Ksh6.8B in Coffee Cooperative debts: CS Oparanya reveals

The government has committed to settling Ksh6.8 billion in verified debts owed by coffee cooperative societies to financial institutions, offering relief to hundreds of smallholder farmers across the country.

Cabinet Secretary for Co-operatives and MSME Development Wycliffe Oparanya announced the move during a coffee sector sensitisation forum held at Kisii School. He confirmed that while the total debt stands at Sh10 billion, the remaining Ksh2.2 billion will be recovered from cooperative officials implicated in misappropriating members’ funds.

Oparanya said Ksh2 billion has already been allocated in the 2025/2026 financial year to begin clearing the verified claims. He also outlined broader reforms aimed at revitalizing coffee production, including the rollout of the Direct Settlement System (DSS) to ensure farmers receive timely payments and are shielded from exploitation by middlemen.

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Under the DSS model, 80 percent of coffee sale proceeds will go directly to farmers, while 20 percent will be retained by cooperatives for operational costs.

The CS urged farmers to tap into the Coffee Cherry Advance Revolving Fund (CCARF) for affordable credit and pledged Ksh500 million for the procurement of quality seedlings and modern pulping equipment.

By Masaki Enock

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