Coffee farmers, KCC win big in revamp plan
A farmer harvests coffee berries at a farm in Kabati, Murang'a County, on November 16, 2015. Treasury has waived a Sh2.4 billion debt coffee farmers owe cooperative societies. PHOTO | EVANS HABIL | NATION MEDIA GROUP
What you need to know:
- The waiver, which is contained in Budget plans submitted to Parliament, will come as a relief to the farmers, who have borne the brunt of the sector’s decline over the years.
- The Industrialisation ministry has also been tasked with overseeing the revamping of New Kenya Cooperative Creameries (KCC) and Rift Valley Textiles (Rivatex).
The National Treasury has handed coffee farmers a huge boost by waiving a Sh2.4 billion debt they owe to cooperative societies.
The waiver, which is contained in Budget plans submitted to Parliament, will come as a relief to the farmers, who have borne the brunt of the sector’s decline over the years.
The allocation has been made under the budget of the Ministry of Industrialisation and Enterprise Development, which has been given Sh11.3 billion — Sh5.4 billion for recurrent expenses and Sh5.9 billion for development.
The President recently appointed a task force to look into issues in the coffee sector, which used to be a major foreign exchange earner before it fell on hard times in the 90s.
The money will also go into the payment of price stabilization, says Treasury, which has broken the ceilings set by Parliament in the Budget Policy Statement by Sh2.9 billion for the recurrent expenditure and Sh604 million for development.
The Industrialisation ministry has also been tasked with overseeing the revamping of New Kenya Cooperative Creameries (KCC) and Rift Valley Textiles (Rivatex).
KCC has been allocated Sh300 million while Rivatex has been given Sh500 million.
The injection of money into Rivatex, which was bought by Moi University for Sh205 million in 2007 and has employed 600 workers, is meant to create 10,000 jobs in the next financial year.
In March, the India's government announced that the company had been loaned Sh3 billion by Indian Exim Bank to fund the acquisition of new machines.
The ministry also plans to spend Sh2 billion for textile development, which Treasury said would go into a textile hub at Athi River.
It has further been allocated Sh3 billion for an aerial geo-physical survey of the country in addition to Sh1.2 billion to develop an industrial park for leather development at Kariorkor and Kenanie.
The ministry projects that the leather industry will create 400,000 jobs in five years.
The budget estimates will now be scrutinised by various departmental committees and the newly-created Budget and Appropriations Committee.
