Gachagua proposes Sh10bn coffee fund as farmers vent

Farmers confront an official of the Othaya Coffee Farmers Cooperative Society during a forum called by the task force appointed by President Kenyatta to look into issues ailing the sector at the Karatina Catholic Church, Nyeri County, on March 17, 2016. They accused cooperative officials of looting funds and called for a lifestyle audit of such officials. PHOTO | NICHOLAS KOMU | NATION MEDIA GROUP

What you need to know:

  • In a letter written to the President and published as an advert in today’s Daily Nation, the chairman of the Agriculture Committee at the Council of Governors, Nderitu Gachagua, said the budget provision would ensure that a farmer receives an extra Sh30 for every kilogramme of cherry.
  • During a session with the special task force formed by President Kenyatta, the farmers said anyone found guilty of stealing from the Kenya Planters Co-operative Union should return the loot and be prosecuted.

Governors have demanded a Sh10 billion fund to stabilise coffee prices as stakeholders began their submission to the team appointed by President Kenyatta to resolve the woes affecting the sector.

In a letter written to the President and published as an advert in today’s Daily Nation, the chairman of the Agriculture Committee at the Council of Governors, Nderitu Gachagua, said the budget provision would ensure that a farmer receives an extra Sh30 for every kilogramme of cherry. This should be paid above the coffee market price.

“The money should be sent directly to farmers through mobile money transfer services like M-Pesa. This will ensure that farmers are not deducted any money by cooperatives or other organisations,” said Mr Gachagua.

The recommendations were also given to the task force appointed by President Kenyatta during its sitting in Karatina on Thursday.

Mr Gachagua accused cooperative society officials of looking for ways to either create artificial debts or buying input at inflated prices as a way of increasing farmers' deductions.

Talking exclusively to the Nation, the Nyeri governor said the maximum that cooperative societies should deduct from farmers is 11 per cent of their earnings.

Currently, the farmers are deducted 20 per cent as operational costs.

“These will have twin effects. Increase the cash that farmers earn and boost production of the crop,” said the county chief.

Mr Gachagua also proposed that the aim of the coffee-growing counties is to increase productivity from three kilogrammes per coffee tree to about 6-10 kg per tree.

“Farmers know how to do this. Coffee production will further be increased in another 3-4 years with resultant increases in acreage under coffee,” he said.

They also wanted the two per cent that farmers pay to the Coffee Research Foundation paid to a coffee development fund.

“Even under the old Constitution coffee is the only crop where farmers were being charged for the cost of research,” said the governor.

But farmers from Nyeri, Murang’a and Kirinyaga opposed the involvement of counties, saying the crop should be regulated by the national government.

They also asked the government to conduct a forensic audit on the coffee industry since 1982 to unearth issues that have been ailing the coffee sector.

During a session with the special task force formed by President Kenyatta, the farmers said that anyone found guilty of stealing from the Kenya Planters Co-operative Union should return the loot and be prosecuted.

They also demanded a lifestyle audit on all chairmen and managers of coffee societies to establish if they were contributing to the losses incurred by farmers.

“Anyone who was found guilty must give the farmers what they have stolen from them. If they are deceased their family should take up the burden of paying up,” said Josephat Mwangi, a farmer from Kirinyaga.

Farmers are also demanding a minimum payment of between Sh200 and Sh500 per kilogram of cherry as they wait for the bonus.

According to the farmers, President Kenyatta should set the minimum amount coffee farmers should receive as bonuses.

They also want the government to brand Kenyan coffee and sell it under one pool. The farmers argued that the long chain of middlemen between the farmer and buyer has led to poor prices.

Dr Andrew Karanja, who chaired the meeting in Karatina, assured farmers that he would deliver the findings and recommendations without amending them.

The team will be in Machakos, Meru, Embu and Tharaka Nithi today.