Mwalimu-G
Elder Lister
December 2023
January, 2024
Coffee Farmers Get Revolving Funds
KNA1 January 13, 2024 Agriculture, Counties, Editor's Pick, Kiambu0
The government has assured coffee farmers in the country of a Guaranteed Minimum Return (GMR) of Sh. 80 for every kilogramme of coffee cherry delivered under the new reforms in the sector.
Cabinet Secretary for Co-operatives and Small, Micro, and Medium Enterprises Simon Chelugui said the new rates will double up from the previous price of Sh.40, which had no guarantees.
He said that the Ksh 6.7 billion coffee cherry revolving fund was a seed investment to assist farmers in easily accessing the proceeds of their sweat, stressing that it was not a loan as most farmers thought but an advance of their earnings.
“This four billion is a cherry advance and means we can unlock liquidity for farmers and relieve them from going to financiers to borrow money at a very expensive rate. This fund is supposed to relieve farmers,” the CS explained.
Speaking to farmers in Kiambu while launching the Coffee Cherry Advance Revolving Fund, the CS noted that although the fund only covers 25 per cent, the funds will assist the farmers in addressing urgent financial needs.
“Every Tuesday we sell coffee, we recover what we give, and we also reinvest. Farmers are borrowing 100 million shillings daily, and through this, it is recovered and ploughed back into the basket,” he said.
He noted that since different coffee factories in the coffee zones do not harvest at the same time, the rotational support is there, and this is the reason why the fund that was set at Ksh 4 billion plus the previous Ksh 2.7 million cherry fund will help the farmers.
“What we are saying is that despite the price changes in the sale, if we were to sell coffee at higher prices, let’s say over Ksh 100, the benefits will be transferred back to the farmer as a bonus,” he clarified.
Today- Farmers from Nandi to Nkuene are crying they've only been paid 20 bob.
January, 2024
Coffee Farmers Get Revolving Funds
KNA1 January 13, 2024 Agriculture, Counties, Editor's Pick, Kiambu0
The government has assured coffee farmers in the country of a Guaranteed Minimum Return (GMR) of Sh. 80 for every kilogramme of coffee cherry delivered under the new reforms in the sector.
Cabinet Secretary for Co-operatives and Small, Micro, and Medium Enterprises Simon Chelugui said the new rates will double up from the previous price of Sh.40, which had no guarantees.
He said that the Ksh 6.7 billion coffee cherry revolving fund was a seed investment to assist farmers in easily accessing the proceeds of their sweat, stressing that it was not a loan as most farmers thought but an advance of their earnings.
“This four billion is a cherry advance and means we can unlock liquidity for farmers and relieve them from going to financiers to borrow money at a very expensive rate. This fund is supposed to relieve farmers,” the CS explained.
Speaking to farmers in Kiambu while launching the Coffee Cherry Advance Revolving Fund, the CS noted that although the fund only covers 25 per cent, the funds will assist the farmers in addressing urgent financial needs.
“Every Tuesday we sell coffee, we recover what we give, and we also reinvest. Farmers are borrowing 100 million shillings daily, and through this, it is recovered and ploughed back into the basket,” he said.
He noted that since different coffee factories in the coffee zones do not harvest at the same time, the rotational support is there, and this is the reason why the fund that was set at Ksh 4 billion plus the previous Ksh 2.7 million cherry fund will help the farmers.
“What we are saying is that despite the price changes in the sale, if we were to sell coffee at higher prices, let’s say over Ksh 100, the benefits will be transferred back to the farmer as a bonus,” he clarified.
Today- Farmers from Nandi to Nkuene are crying they've only been paid 20 bob.
