Machakos Governor Wavinya Ndeti has appealed to the government to waive a Ksh603 million debt owed by coffee cooperative societies in the county.
Governor Ndeti, who hosted the Cooperatives and MSMEs Cabinet Secretary (CS) Simon Chelugui during the launch of the Coffee Cherry Advance Revolving Fund in Kangundo on Tuesday, said that farmers in the region needed the waiver to enable them to begin on a clean slate.
Ndeti added that the debt was small compared to what the national government had waived to farmers in other regions.
“I appeal to the national government to consider extending the debt waiver to our coffee farmers just as it has happened to sugar and tea farmers in other parts of the country,” she said.
The governor also asked the national government to reconsider plans to tax coffee farmers adding that farmers were already being burdened with high costs of agricultural inputs.
CS Chelugui said that the government had embarked on serious reforms in the sector including the introduction of the Coffee Cherry Advance Revolving Fund, the re-establishment of the Coffee Board of Kenya and the licensing of 14 unions to represent coffee farmers.
He noted that Ksh6.2 billion had been allocated to the Fund this financial year which will ensure that farmers get at least Ksh80 per kilogram.
“We are paying Ksh40 on arrival at the factory and a further Ksh40 on arrival at the mill and this is not a loan. Payment is guaranteed one month after harvesting and whenever there is a price change, farmers will get a bonus,” he said.
Chelugui added that farmers will also be free to decide whether to be paid in dollars or in shillings through the Direct Sales Settlement.
The meeting brought together hundreds of coffee farmers from Machakos and Taita Taveta counties.
By Stephen Muthini
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