NCE halts implementation of direct payment model to farmers

Nairobi Coffee Exchange (NCE) has put on hold implementation of the direct payment models to the coffee farmers on a weekly basis.

The move to transition to the farmer direct payment model from the Direct Settlement Systems, (DSS) that remitted the coffee proceeds through the cooperative societies, was ordered to be suspended by the NCE Acting CEO Symon Mburia on Thursday.

In a communication to the Cooperative Bank CEO Gedion Muriuki, NCE detailed that the transition was stopped pending further guidance from the relevant regulatory authorities.

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The DSS which was implemented on August 15, 2023 to match with the coffee general regulations 2019, is operated by the Cooperative Bank.

“NCE directs that the current settlement payment system remains in use until such time that new instructions are issued. This position has been agreed upon to ensure continuity and stability in the trading and settlement process,” read part of the letter.

Across the Mt Kenya region, the farmers had raised objections calling on the government to consider supplying them with enough subsidised fertilisers and certified seedlings.

The farmers in Murang’a, Nyeri, Embu and Kirinyaga had petitioned Cooperative Cabinet Secretary Wycliffe Oparanya to shelve the decision as it will disrupt coffee farming.

By A Correspondent

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