Coffee thefts threaten to derail efforts to revive ailing industry

Theft of coffee from factories and farms is posing a serious threat to an industry just recovering from years of low production, mismanagement and poor earnings.

The problem has become so widespread that industry regulator Coffee Board of Kenya (CBK) on Tuesday sounded the alarm and warned farmers, dealers and agents involved of stern action against the culprits.

“The board wishes to draw the attention of law enforcement agencies, the public and coffee industry stakeholders on rising cases of coffee theft and illegal dealings in some coffee growing areas. This is in contravention of the law and is a punishable offence,” the regulator warned in an advertisement on Tuesday.

“Millers, warehousemen and dealers must at all times insist on valid movement permits for all coffee received at their premises as a sign of authenticity, transparency and traceability,” the CBK advertisement said.

CBK managing director Ms Loise Njeru said about 10,000 tonnes of coffee produced last year was not reflected in the board’s figures and it is suspected that it found its way to either Uganda or Ethiopia.

According to the board’s statistics, farmers produced 43,000 metric tonnes, but this could have been higher if all the output had been accounted for.

“If we discover that registered dealers or millers are involved, we shall take appropriate action, which includes revoking their licences,” Ms Njeru told a recent stakeholders’ workshop in Nairobi.

So severe is the problem, particularly in Central Province and west of the Rift Valley, that an electronic device that alerts residents of intrusions into coffee factories has been invented.

Last year, farmers in the country are estimated to have lost more than Sh40 million worth of coffee to thieves.

The CBK says 1,216 bags of coffee were stolen from co-operatives between July and December last year, raising concerns that farmers faced a fresh challenge as they try to revive the sector.

Current problems at the Kenya Planters Co-operative Union (KPCU) have left farmers, particularly in Western Kenya, exposed to theft as they first have to accumulate large volumes of beans before transporting them to millers as far as central Kenya.

“We lost 93 bags at our factory in August last year,” Mr Alfred Keanya, chairman of Kiomooncha Coffee Factory in Kisii, said.

In the same month, coffee from Kisii was reported stolen around Naivasha as it was being transported to a miller. Komothai and Igegania co-operative societies in Kiambu lost 148 and 120 bags, respectively. A coffee estate in Thika lost 400 bags.

Last year, unscrupulous coffee traders were killed in an operation launched to curb illegal cross-border trade of coffee between Kenya and Uganda.

According to sector players, the recent high prices of coffee against the backdrop of low production has triggered competition for the available beans, with some registered dealers suspected to be aiding the illegal trade.

Coffee has been fetching high prices in the past two years but dry weather and disease have hampered increased production.

“Some of the industry players are encouraging these crimes. Some of them got milling licences yet our capacity for milling is far above production,” a senior coffee expert said.

The CBK urged growers to insure coffee in their stores or in transit and to avoid accumulating huge stocks. It also advised them to beef up security at the peak of the season.