NAIROBI, Kenya- The National Assembly Departmental Committee on Trade, Industry, and Cooperatives is calling for at least Sh17.7 billion to be allocated to the New Kenya Planters Cooperative Union (New KPCU) to ensure the organization operates at its full potential.
James Gakuya, Chairperson of the Committee, emphasized the pressing need for significant funding during an inspection tour.
He observed that New KPCU requires an additional Ksh. 15 billion to increase payments to coffee farmers, on top of the current Kshs. 4 billion allocation.
Furthermore, Ksh. 2.7 billion is needed to modernize coffee warehouses across the country.
“Following the inspection tour, the Committee noted that there is a pressing need to modernize the nineteen warehouses yet to be updated, especially the removal of asbestos, which poses health risks,” said Gakuya.
Despite these urgent needs, Gakuya expressed concern over the slow disbursement of the already allocated Kshs. 4 billion coffee cherry fund.
Only Kshs. 500 million has been disbursed so far, delaying the anticipated payment increase from Kshs. 40 per kg of cherry to Kshs. 80 per kg .
The Committee recommends that New KPCU should focus on completing one warehouse at a time to streamline the modernization process.
The current approach of attempting to modernize multiple warehouses simultaneously has resulted in slow progress.
“This approach is proposed to ensure efficient results. By prioritizing one warehouse at a time, the agency can streamline the modernization process,” the report noted.
In addition to asbestos removal, the modernization plan includes painting, floor works, and constructing boundary walls to improve security at New KPCU branches.
Proximity challenges of existing milling plants also mean high transportation costs for farmers who have to travel long distances to deliver their coffee for milling.
The ongoing coffee reforms have expanded New KPCU’s role in the industry. The Committee highlighted the need for modern laboratory equipment and cupping facilities to help New KPCU compete with multinational companies and access international markets directly.
The goal is ambitious: New KPCU aims to increase its production capacity from 3,018 tonnes to 20,000 tonnes by 2027.
However, without full funding for facility modernization, meeting this target remains highly unlikely.
“Modernization involves removing hazardous asbestos roofing and improving overall infrastructure, crucial steps for reaching our production goals,” Gakuya’s team warned.
The reforms have also opened up the coffee buying market, previously dominated by four multinational companies.
This increased competition is expected to prevent price exploitation, offering fairer prices to farmers for their coffee.
Kenya’s coffee sector is at a critical juncture, with significant potential for growth and increased farmer benefits. However, achieving this requires urgent and substantial investment in New KPCU.
